November 2011 Magazine

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For Active and Retired Federal Employees

RETIREMENT LIFE

NOVEMBER 2011, Volume 87, Number 11

LEGISLATIVE REPORT 8 10 12 14 16 18 19

President’s Deficit Cuts Hit Federal Workers NARFE-Supported Flag Bill Pulled After Protest Congress Weighs Postal Service Proposals Date Set for Next Legislative Conference Verify Those Chain E-mails!

COLUMNS 6 Message From the National President

Scenes from ‘Grass-Roots Advocacy Month’

24 Managing Money

Civics 101: Info Available, Feedback Needed

26 Live Well

COVER STORY 20

Cover design by Jim Richards

Speculation Swirls Around Supercommittee.

The November 23 deadline for the panel to complete its deficit-reduction bill is looming. It is unclear how feds might fare —or even if the panel can reach an agreement.

28 Benefits Checkup 30 Civil Service Career Coach

SPECIAL SECTION 34 Open Season Report 2012 FEHBP Rates

DEPARTMENTS 48 54 55 58

Questions & Answers NARFE News Out & About For the Record: TSP Investments, COLA Chart

NARFE Resources NARFE-PAC Coupon . . . . . . . .16 Membership Application . . . . . .53 Life Membership Application . . .54 Alzheimer’s Coupon . . . . . . . . .55 NARFE Member Perks . . . . . . .56

‘Like’ us on Facebook (Narfe National Headquarters) visit us online at www.narfe.org

NATIONAL OFFICERS

Here’s How to Contact NARFE ...

JOSEPH A. BEAUDOIN, President; natpres@narfe.org PAUL H. CAREW, Vice President; natvp@narfe.org ELAINE HUGHES, Secretary; natsec@narfe.org RICHARD G. THISSEN, Treasurer; nattreas@narfe.org

If you want to: • Join NARFE Call (toll-free):

800-627-3394 or 800-456-8410 Or go to: www.narfe.org

If you want to: • Change your address • Check your membership status • Find out dues owed • Provide a death notification Call (toll-free):

800-456-8410 E-mail:

memberrecords@narfe.org If you want to: • Add your e-mail address to your record (to receive GEMS e-mail messages, the Legislative Hotline and NARFE NewsWatch): Call (toll-free):

800-456-8410 E-mail:

memberrecords@narfe.org

REGIONAL VICE PRESIDENTS REGION I (Acting) Augie Stratoti (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) Tel: 603-889-1073 E-mail: augrs@juno.com REGION II Ronald P. Bowers (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) Tel: 410-308-0420 E-mail: narferbowers@msn.com REGION III Donald Stewart (Alabama, Florida, Georgia, Mississippi, Puerto Rico, South Carolina and Virgin Islands) Tel: 305-442-6388 E-mail: dejs33149@aol.com REGION IV Paul E. Johnson (Illinois, Indiana, Michigan, Ohio and Wisconsin) Tel: 812-306-5137 E-mail: pejohnson@tds.net REGION V Carol R. Ek (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) Tel: 620-241-1131 E-mail: ek617@att.net

REGION VI Jerome S. Smith (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) Tel: 903-534-5849 E-mail: retiredjer@aol.com REGION VII Betty Lucero-Turner (Arizona, Colorado, New Mexico, Utah and Wyoming) Tel: 719-583-0910 E-mail: blturner2311@aol.com REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) Tel: 707-644-7565 E-mail: hlz17@aol.com REGION IX Lanny G. Ross (Alaska, Idaho, Montana, Oregon and Washington) Tel: 360-692-9741 E-mail: lannyjean@comcast.net REGION X William F. Martin (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) Tel: 540-872-3345 E-mail: narfe2065@hughes.net

E-mail: memberrecords@narfeorg

If you want to:

• Hear the Legislative Hotline Call (toll-free):

877-217-8234 If you want to: • Get materials to recruit members: Call (toll-free):

800-627-3394 E-mail:

rr@narfe.org

For any other NARFE matter: Call NARFE Headquarters

703-838-7760 E-mail: hq@narfe.org Fax:703-838-7785 Write: NARFE 606 N. Washington St. Alexandria,VA 22314

NARFE MAGAZINE Volume 87,Number 11 Editor, Margaret M. Carter Assistant Editor, Donna J. St. John Editorial Administrator, Toni Vallario Graphic Designer, Beth Bedard Contributing Designers, Charlene Gridley, Jim Richards Editorial Board: Joseph A. Beaudoin, Paul H. Carew, Elaine Hughes, Richard G. Thissen Editorial Office: NARFE, Attn: NARFE magazine, 606 North Washington St., Alexandria, VA 22314-1914; Phone: 703-838-7760; Fax: 703-838-7781; E-mail: rl@narfe.org Advertising Sales: Warren Berger, Media People Inc., 122 East 42nd Street, Suite 725, New York, NY 10168; 212-779-7172, ext. 223; E-mail: wberger@mediapeople.com

NARFE for the Visually Impaired On the Telephone: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFB-NEWSLINE® service at 866-504-7300 or go to www.nfbnewsline.org.

On Tape: Issues of NARFE magazine are also available on cassette through the National Library Service for the Blind and Physically Handicapped. To find out about availability in your area, call 800-424-8567 and ask for the Reference Section.

The Association, since July 1970, has been classified by the IRS as a tax exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.

NARFE (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St.,Alexandria,VA 22314. Periodicals postage paid at Alexandria,VA, and additional mailing offices. Members: Annual dues includes subscription. Non-member subscription rate $45. Postmaster: Send address change to: NARFE Attn:Member Records,NARFE 606 N.Washington St.,Alexandria,VA 22314.To ensure prompt delivery,members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken.

All submissions become the property of NARFE. Contents of this magazine are copyrighted © 2011.Advertisements in the magazine are not endorsements of products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in NARFE, but at the same time we will not undertake to guarantee the reliability of our advertisers.

4

NOVEMBER 2011 | NARFE

OVER 900 YEARS OLD!

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Knights Templar and Crusaders on a holy quest.

They set out on a legendary journey. They brought back a historic artifact, one of two to survive to this day that lays claim to being the actual Holy Grail.

What the Crusaders found is a stunning glass goblet.

It resides today in the main cathedral in the powerful Italian city-state of Genoa.

The Crusaders acquired what is arguably the most coveted object in history not by means of a bloody battle or political intrigue.

They paid a ransom for it. Using 900-year-old Italian fine Silver Denier coins.

The same 900-year-old fine silver coins used to pay the Crusaders.

The mystery around the Grail is thick. There is none around these silver coins.

We don’t know where, precisely, the glass goblet in Genoa was found. Nor how much ransom was paid in Silver Crusader coins.

We do know that in the 1100s, these fine silver coins were struck in Genoa.

We also know that the vast majority of authentic medieval Italian Silver Crusader coins have vanished over the past 850 years.

When a hoard of 925 fine Silver Crusader coins came to light in Switzerland recently, we bought every last one.

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®

A Message From the National President

Being Thankful

I

t’s that time of year when all Americans pause to count their blessings. Most of the people I know take the time to be thankful for their families and friends, for their health and for the privilege of living in this great

nation.

The majority of historians agree that the first Thanksgiving in America took place in the autumn of 1621 as the Pilgrims and Native Americans celebrated a bountiful harvest. Thanksgiving did not become a holiday until 1863, when President Abraham Lincoln issued a proclamation in October setting aside the last Thursday in November as a “day of Thanksgiving and Praise …” We’ve been celebrating ever since.

One wonders what the people of 1863 must have thought about Lincoln’s proclamation.

Our nation was involved in a bloody Civil War, which would rage on for another year and a half. It must have been a difficult time to be thankful. But Lincoln asked his fellow citizens to find a reason to be thankful. As we prepare to celebrate Thanksgiving 2011, let me suggest that, just as those who in 1863 might have had some doubts, we still have much to be thankful for.

First, as your National President, I want to say thanks to all of you. We survived the initial attack on our earned benefits when Congress and the president approved the debt-ceiling legislation in August. When I say, “we survived,” I mean that our benefits were not reduced or eliminated. The reason is mainly due to those of you who responded to our requests to contact your legislators and the president. You definitely made the difference through your participation.

But even though we survived this attack on our benefits, this does not mean that we shouldn’t prepare for the next round. Continuing to call or e-mail your legislators and the president will remind them that you are holding them ac-

countable for keeping the promises that were made when you were first hired to work for the federal government.

As we count our blessings, I would hope that you also will think of NARFE, and your membership in NARFE, as a blessing. For 90 years, NARFE has been the only association solely dedicated to protecting and enhancing the retirement annuity and health care benefits of federal workers and retirees. This has been a trying year, with one assault after another aimed at the federal employee and retiree community. And yet, as National President, I look with pride at what we have accomplished thus far, and I pledge that we will continue to fight to protect our earned benefits.

But we need each and every one of you to stand with us in this fight. Whether it’s a call, a letter or an e-mail message to your members of Congress and the White House, a personal visit with your senators or representative (or his or her staff), or a contribution to assist us in this effort, all that you do is greatly appreciated.

Many of you have received the NARFE Photo Contest Calendar in the last few weeks.

While this calendar is our gift to all NARFE members, we know that thousands of you will take the opportunity to send a voluntary donation so we can continue to advocate for the federal family. For that, I am grateful.

As we close out our yearlong celebration of NARFE’s 90 years of service, let me again thank you for all that you do for NARFE, and wish you and your families a Happy Thanksgiving from all of us at NARFE Headquarters.

THIS HAS been a trying year;and yet, I look with pride at what we have accomplished thus far.

6

Joseph A. Beaudoin natpres@narfe.org

NOVEMBER 2011 | NARFE

You can make a difference in the fight against Alzheimer’s. And your financial future.

Help end Alzheimer’s disease with a Charitable Gift Annuity.

When you choose an Alzheimer’s Association Charitable Gift Annuity, you’re making a choice that is not only smart for you financially, but smart for future generations.

In addition to supporting Alzheimer’s research, programs and services, this planned giving option may also provide income, estate and capital gains tax savings. To participate, simply transfer cash, stocks or other assets to receive tax-free payments at a fixed rate for life that will supplement your income.

Estate gifts count toward NARFE’s total fundraising goal to support the Alzheimer’s Association. Your fellow NARFE members are joining the fight against Alzheimer’s. You can make a difference too.

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©2011 Alzheimer’s Association. All Rights Reserved.

LEGISLATIVE REPORT

President’s Deficit Cuts Hit Calls Federal Workers NARFE Plan a ‘Tax’ on

A

s part of his deficit-reduction plan, President Obama would require federal workers to contribute an additional 1.2 percent of salary to retirement and would end the Federal Employees Re-

tirement System (FERS) annuity supplement. He released the plan on

Middle Class ■ Voters will go to the polls in

November in Kentucky, Louisiana and Mississippi to select governors in “off-year” elections.

September 19, saying it would cut the budget $3.2 trillion over 10 years.

■ “Off-year” elections take

“Federal employees and retirees are willing to do their fair share to reduce the deficit and are currently undergoing a two-year pay freeze,” said NARFE President Joseph A. Beaudoin in response to the proposal. “Why would we be required under the president’s plan to pay an additional 1.2 percent payroll tax to a retirement system that is fully funded?”

Beaudoin said that this policy would also widen the disparity in benefits between the federal workforce and the private sector. While employees currently make contributions from their salary to the Civil Service Retirement and Disability Fund, most large private-sector employers historically have not required their workers to make any contribution toward their defined-benefit pensions. According to the U.S. Department of Labor, private-sector workers put in $1 for every $109 their employers contributed to their defined-benefit plans in 2008, the latest year for which statistics are available.

Obama’s proposal served two pur-

8

poses: first, to recommend to the Joint Select Committee on Deficit Reduction – the “supercommittee” – how to reduce the deficit by $1.5 trillion by its November 23 deadline (see story, p. 20) and, second, to pay the $477 billion cost of the jobs bill he sent to Congress in September. A key feature of the jobs bill is intended to help stimulate the economy by cutting the Social Security payroll tax in half, from 6.2 percent to 3.1 percent.

“If the president is concerned about protecting the middle class from tax increases, imposing a 1.2 percent payroll tax on middle class federal employees seems to contradict his ideas – particularly when he simultaneously suggests a Social Security payroll tax holiday,” Beaudoin said.

ENDING FERS SUPPLEMENT While the plan to make workers pay more for retirement has been widely discussed since it was recommended by the president’s Fiscal Commission in December 2010, the president’s plan to

place in the years between midterm and presidential elections. Except for special elections to fill vacant offices, no national elections are held.

■ Four special congressional

elections already have taken place in 2011 – two in New York and one each in Nevada and California. The only congressional election in November will be a special primary in Oregon’s 1st congressional district, to fill the vacancy created by the resignation of Rep. David Wu. The general election in that race will be January 31, 2012.

LEGISLATIVE HOTLINE Toll-free! (24 Hours): 877-217-8234 Legislative Action Center: www.narfe.org NOVEMBER 2011 | NARFE

Presenting the V ÕÃÌ VÊ 7>Ûi ® ÕÃ VÊ ÃÞÃÌi Ê °Ê "ÕÀÊ LiÃÌ «iÀv À }Ê > iÊ ÕÃ VÊ ÃÞÃÌi ° When we introduced the original Acoustic Wave® music system, Sound & Vision said it delivered “possibly the bestreproduced sound many people have ever heard.” And the Oregonian reported it had “changed the way many Americans listen to music.”

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FREE 7>Ûi®ÊÀ>` Ê ÊÜ i ÊÞ ÕÊ À`iÀ

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*Bose payment plan available on orders of $299-$1500 paid by major credit card. Separate financing offers may be available for select products. See website for details. Down payment is 1/12 the product price plus applicable tax and shipping charges, charged when your order is shipped. Then, your credit card will be billed for 11 equal monthly installments beginning approximately one month from the date your order is shipped, with 0% APR and no interest charges from Bose. Credit card rules and interest may apply. U.S. residents only. Limit one active financing program per customer. ©2011 Bose Corporation. The distinctive design of the Acoustic Wave® music system II is also a registered trademark of Bose Corporation. Financing and free Wave® radio II offers not to be combined with other offers or applied to previous purchases, and subject to change without notice. If the system is returned, the changer and radio must be returned for a full refund. Offers are limited to purchases made from Bose and participating authorized dealers. Offer valid 10/1/11-11/19/11. Risk free refers to 30-day trial only, requires product purchase and does not include return shipping. Delivery is subject to product availability. iPod and iPad are registered trademarks of Apple Inc. Quotes reprinted with permission: Sound & Vision, 3/85; Wayne Thompson, Oregonian, 9/10/96.

Legislative Report end the FERS annuity supplement for newly hired federal employees had not received serious consideration until now.

The FERS annuity supplement is compensation paid in addition to the FERS monthly annuity to certain federal employees who are eligible to retire with an immediate annuity before age 62. Unlike Civil Service Retirement System annuitants, FERS retirees depend on the “three-legged stool” of their smaller FERS annuity, the 401(k)-style Thrift Savings Plan and Social Security. However, the earliest age eligible individuals can begin receiving a Social Security benefit (albeit

NARFE-Supported Flag Bill Pulled After Protest

C

ongressional sponsors are regrouping after a NARFE-supported bill to honor civil servants killed in service was unexpectedly taken off the House calendar September 7 after a protest by the American Legion.

H.R. 2061, the “Civil Service Recognition Act of 2011,” would allow federal agencies to pay for and provide an American flag to the family of a federal employee who dies of injuries in connection with his or her service. The American Legion described the legislation as a “misguided attempt to equate civil service with military service,” noting that “civil service workers do not sign a pledge to defend America with their lives.”

NARFE contends that the bill does not equate civil service with military service. Members of the military are entitled to a burial flag irrespective of whether they die while in service, the Association notes, and they are entitled to a burial plot in a national cemetery, an honor guard and military honors during their funeral.

On September 2, NARFE and other federal employee groups sent a letter to Speaker of the House John A. Boehner, R-OH, and Majority Leader Eric Cantor, R-VA, urging them to provide for a vote on the bill through expedited procedures. “OPM reports that approximately 3,000 federal employees have been killed in the line of duty since 1992,” the groups wrote.“This Act would ensure that future employees who are killed while performing official duties are recognized for their valor and dedication to their agency, and, most importantly, to the people of the United States.”At press time, congressional staff was working to make minor changes to the bill’s language to ensure passage.

By John Hatton, Legislative Specialist

10

STORY HIGHLIGHTS ■ President Obama’s deficit-reduction plan would

require feds to contribute more for their retirement and would end the FERS annuity supplement. NARFE opposes these plans.

■ But NARFE supports the president’s proposal to lower prescription drug costs in the FEHBP by using one pharmaceutical benefit manager to negotiate drug prices for all FEHBP plans. a reduced amount) is 62 years old. To ensure retirees received all three legs of FERS, the authors of the 1986 FERS law (including NARFE) created the annuity supplement to provide retirees the equivalent of a Social Security benefit until age 62.

Newly hired federal law enforcement officers, firefighters, air traffic controllers and Foreign Service officers, who are required to retire before age 62, would continue to receive the FERS annuity supplement. So would new employees of the judicial and legislative branches.

In anticipation of receiving criticism for not ending the annuity supplement for newly elected members of Congress, the administration said it left the legislative branch out of the proposal to avoid encroaching on the constitutional prerogative of the legislative branch to set its own personnel policy.

Instead, the administration suggested that Congress decide whether the reduction would apply to the legislative branch.

CONTAINING DRUG PRICES One of the president’s proposals that does not cut benefits but may help to reduce the deficit is a plan first offered in his fiscal year 2012 budget that could contain Federal Employees Health Benefits Program (FEHBP) drug costs.

Most FEHBP plans contract with pharmaceutical benefit managers (PBMs) to negotiate discounts on prescription drugs with manufacturers. While PBMs help to contain FEHBP drug costs, their leverage to negotiate discounts is limited because they are spread out among the more than 200 different plans that are offered through the FEHBP. Under the administration’s proposal, which is similar to a recommendation first made by NARFE in 2001, the Office of Personnel Management would contract with a single PBM to negotiate, using the leverage of all nine million FEHBP participants. The plan is modeled after the pharmacy benefit offered by the military’s TRICARE For Life program. NARFE supports this proposal, as well as allowing FEHBP plans to buy drugs at the Federal Supply Schedule-mandated discount.

By Dan Adcock, Legislative Director Legislative Counsel Alan Lopatin contributed to this article.

NOVEMBER 2011 | NARFE

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Legislative Report

Congress Weighs Proposals on the Future of the Postal Service

W

ith the U.S. Postal Service (USPS) facing financial problems, both the House of Representatives and the Senate have been weighing a number of legislative proposals to return the USPS to sound financial footing. NARFE has urged Congress to protect the earned retirement and health benefits of postal employees and retirees.

The USPS did not have the cash on hand to meet a September 30 deadline to pay $5.5 billion to prefund future retiree health benefits. Congress, however, extended the deadline as part of a continuing resolution appropriations bill to keep the entire government operating past October 1, the start of the 2012 fiscal year. The delay is intended to give members of Congress more time to agree on a longer term solution for rehabilitating USPS finances.

SENATE HEARING On September 6, the Senate Committee on Homeland Security and Government Affairs held a hearing to examine various postal reform proposals. As reported in the October issue of NARFE magazine, the USPS released legislative proposals on August 12 that would allow it to lay off 120,000 postal workers, and remove its 480,000 annuitants and 600,000 employees from federal retirement and health benefits plans. A number of senators expressed their concerns, although they generally withheld judgment as they received testimony of various witnesses, including Postmaster General Patrick Donahoe. No senator expressed support for the proposals.

Sen. Thomas R. Carper, D-DE, introduced S. 1010, the “Postal Operations Sustainment and Transformation Act of 2011.” The bill would allow for the application of modern, well-accepted principles of accounting to be applied to the USPS share of retirement benefit liabilities, which would allow for a refund of overpayments to the U.S. Treasury. Enacting this portion of the bill would restore the USPS to a sound financial status, and it would not alter any obligations owed by the U.S. government for payment of retirement benefits to postal retirees or any other federal retirees.

The bill also aims to cut costs and increase revenues for the USPS. To cut costs, it would allow the USPS to eliminate Saturday delivery or even further reduce mail delivery, and would change arbitration rules that could reduce pay and

12

STORY HIGHLIGHTS ■ The House and Senate are considering bills to get

the U.S. Postal Service on sound financial footing.

■ A Senate committee held a hearing but did not

approve a bill.

■ A House subcommittee approved a bill that would

create a commission to recommend post office closures and specifies other cost-cutting moves. benefits negotiated in collective bargaining agreements. It also would make it easier to replace post offices with less costly alternatives, such as using self-serve kiosks and providing services at retail stores. To generate revenue, the bill would give the USPS the flexibility to offer new products and services, such as shipping beer and wine.

Sen. Susan Collins, R-ME, the committee’s ranking member, also introduced legislation, S. 353, the “U.S. Postal Service Improvements Act of 2011,” to rehabilitate USPS finances and enact long-term cost-cutting measures. S. 353 shares provisions with Carper’s bill that would allow for the application of fair accounting standards to the USPS share of retirement benefit liabilities. But the bill also includes provisions to terminate workers’ compensation payments for federal employees, replacing that income with retirement annuities. NARFE has voiced concerns about those provisions, stating that they do not adequately take into account disadvantages faced by federal employees disabled because of a work-related injury or illness, leaving them with unfairly reduced retirement income.

Sen. Joseph I. Lieberman, I-CT, committee chairman, expressed the general consensus among the committee members: “I have an open mind on the various proposals that have been made; but, to me, the bottom line is that we must act quickly to prevent a Postal Service collapse and then enact a bold plan to secure its future.”

NARFE URGES CONGRESS TO PROTECT RETIREMENT AND HEALTH BENEFITS On September 14, NARFE President Joseph A. Beaudoin wrote to members of Congress, urging them to oppose the August 12 USPS proposals. “The USPS proposal to remove postal employees and retirees from the federal retirement NOVEMBER 2011 | NARFE

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Legislative Report Save the Date!

Legislative Conference March 9-12, 2013

N

ARFE has set the date for its 2013 Legislative Training Conference. It will be Saturday, March 9, throughTuesday,March 12,2013.It will take place in a new venue: the Renaissance Arlington Capital View Hotel in Crystal City, VA. The hotel is across the street from the hotel used for the last two conferences.Conference details and how to register will be released approximately six months prior to the event. and health benefits programs, replacing those programs with its own, could increase health care costs for current retirees, and reduce both retirement and health benefits for current and future postal employees while increasing USPS administrative costs,” wrote Beaudoin.

Recognizing the financial problems faced by the USPS, Beaudoin asked Congress to pass H.R. 1351, the “USPS Pension Obligation Recalculation and Restoration Act of 2011,” which, he argued, “provides a fair and effective means for rehabilitating the finances of the postal service without doing it wholly on the backs of our nation’s postal workers and retirees.” H.R. 1351 requires the Office of Personnel Management to use a fair and equitable accounting methodology to recalculate the appropriate allocation of costs for postal service employee retirement benefits held by the USPS. It provides a solution similar to that proposed in provisions of both Carper’s bill, S. 1010, and Collins’ bill, S. 353, but does not include objectionable provisions regarding five-day mail delivery, workers’ compensation payment and arbitration rules.

PRESIDENT’S PROPOSAL President Obama released postal reform proposals on September 19 as part of a larger set of economic growth and deficit-reduction recommendations to the supercommittee and Congress. To rehabilitate USPS finances in the shortterm, the president proposed restructuring the USPS obligation to prefund future retiree health benefits. Under the 2006 Postal Accountability and Enhancement Act, the USPS has been required to fund its obligations for retiree health benefits due over the next 75 years in a 10-year period. The president also proposed providing the USPS with a two-year holiday from its scheduled contributions to the Federal Employees Retirement System (FERS) to take into account a

14

current $6.9 billion surplus in USPS FERS contributions.

In addition, the president proposed reducing USPS operating costs by giving the USPS the authority to stop delivering mail on Saturdays. To generate more revenue, he proposed allowing the USPS to charge more to deliver mail, and to allow it to offer nonpostal products and increase collaboration with state and local governments.

HOUSE SUBCOMMITTEE APPROVES HOUSE GOP POSTAL REFORM PROPOSAL On September 21, the House Subcommittee with jurisdiction over USPS issues approved H.R. 2309, the “Postal Reform Act of 2011,” introduced by Rep. Darrell Issa, R-CA. The bill would establish a commission to recommend closures of post offices, mail processing facilities and administrative offices that would be contingent on a congressional vote of disapproval.

In the event that the USPS is unable to meet a scheduled payment to the U.S. Treasury, such as the $5.5 billion prepayment for future retiree health costs (which the USPS is unable to make), the bill would trigger the establishment of a new governing “Authority” and provide the USPS with the enhanced ability to cut costs. Notably, the USPS would be able to alter unilaterally the terms of its collective bargaining agreements, essentially rendering those negotiated compromises meaningless.

The bill also calls for cost savings to be achieved by downsizing the number of post offices and facilities; increasing postal employee contributions for health and life insurance premiums; lowering employee pay by requiring pay comparable to the “entire private sector,” rather than comparable jobs, such as that of a United Parcel Service or FedEx employee; allowing the USPS to end Saturday mail delivery; and phasing out most residential to-the-door deliveries in four years, requiring customers with mailboxes at their front door to use curbside boxes or a neighborhood cluster box. The bill also would reduce retirement age compensation for postal employees disabled by a work-related injury or illness. To generate more revenue, H.R. 2309 would allow the USPS to sell advertising space at post offices and on mail trucks, and allow for the provision of postal services at retail stores.

The subcommittee voted along party lines to approve the measure, with the eight Republicans voting in favor, and the five Democrats voting against it.

NARFE will continue to work with its federal/postal coalition partners to urge Congress to protect the earned retirement and health benefits of postal employees and retirees.

By John Hatton, Legislative Specialist NOVEMBER 2011 | NARFE

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Legislative Report

VerifyThose Chain E-mails!

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n e-mail message circulating on the Internet makes it appear as though Congress is preparing to pass legislation that would require a 1-percent fee on specified transactions, including payments by check, cash, credit card or other financial instrument. However, the legislation – the “Debt Free America Act” – is unlikely to see the light of day.

The Debt Free America Act was first floated in 2004 by Rep. Chaka Fattah, D-PA, who says it would replace the federal income tax and eliminate the national debt. Introduced in the 111th Congress (2010-2011) as H.R. 1125, it is identified in some e-mails by its past bill number, H.R. 4646. The legislation has never received much support, and the White House has not endorsed it. As a result, Fattah’s legislation has not gone anywhere and does not pose a threat.

While H.R. 1125 is not moving through Congress, the e-mail message circulating through the Internet should remind all NARFE members of the importance of verifying information sent via chain e-mail. Several websites are good resources for checking information circulating on

Are You In the Loop?

To get timely Legislative Alerts and the weekly Legislative Hotline, make sure NARFE has your e-mail address. Call 800-456-8410 or go to www.narfe.org.

STORY HIGHLIGHTS ■ Despite what an e-mail message circulating on the

Internet says, a bill that would require a 1-percent fee on financial transactions is unlikely to pass.

■ NARFE members are reminded that information they receive via the Internet or e-mail should be verified before being believed or forwarded on to others.

■ NARFE recommends three sources for checking on the credibility of Internet messages.

the Internet. They are: • www.snopes.com – Started in 1995 by two individuals interested in exploring urban legends, the website has become a highly respected and quoted source for checking all kinds of information.

• www.factcheck.org – The site is part of the Annenberg Public Policy Center at the University of Pennsylvania. The staff checks the accuracy of statements made by national politicians.

• www.politifact.com – Politifact.com is a project of the St. Petersburg Times. A group of reporters checks statements made by politicians nationally; and, through agreements with some local newspapers, several states have their own politifact-type organizations.

I support NARFE•PAC, the Retirees’ Fund for the Future Enclosed is my NARFE-PAC contribution: $ Federal law requires political committees to report the name, mailing address, occupation and name of employer for each individual whose contributions aggregate in excess of $200 in a calendar year.

Please circle:

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By Sarah Holstine, Legislative Specialist

Please send check, money order or credit card information to: Attn: Budget & Finance NARFE 606 N. Washington St. Alexandria, VA 22314-1914 Card Type:

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❍ Mastercard ❍ Discover

Address

Card #

City, State, ZIP

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❍ VISA ❍ AMEX

❍ For my contribution of $20 or more, please send a NARFE-PAC pin.

Signature Date Only members of the National Active and Retired Federal Employees Association may contribute to NARFE-PAC. NARFE will neither favor nor disadvantage anyone based on the amount of a contribution, or the failure to make a voluntary contribution to this non-partisan political action fund. NARFE-PAC contributions are not deductible for federal income tax purposes.

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Legislative Report Scenes From ‘NARFE Grass-Roots Advocacy Month’

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ith reports and photos still arriving,the signature ability of NARFE groups to meet face-to-face with members of Congress (and their staff) is displayed here. Captioned photos etch into the memory of members of Congress the images of their NARFE-member constituents.

The NARFE website’s “Out & About Photo Gallery” has no space limitation. NARFE members should be certain to take and send photographs like these whenever they meet with a public official. Attach photos to an e-mail message and send to rl@narfe.org.

Whenever an issue of NARFE magazine includes the name of a member of Congress, the Legislative Department hand-delivers a copy to that legislator. The same policy applies to any issue that includes an image of a member of Congress.

Rep. James E. Clyburn, a member of the congressional “supercommittee,” met with members of Chapter 87 in Columbia, SC. Seated: W.K. “Chub” Jordan and Gwen Sharpe. Middle row, left to right: William Toney, Linda Toney, Kathy Hensley, Clyburn, Olivia Williams and Tom Daniels. Back row, left to right: Paul Donahue and Ernest Williams Jr.

Members of Chapter 55, Tucson, AZ, briefed Rick Stilgenbauer of Sen. John McCain’s office. From left: Jane Pall, Etta Bryant, Delores Fairson, Stilgenbauer, Vern Pall and Shirley Beene.

ABOVE: NARFE members from chapters in and around San Antonio pose with Rep. Charles Gonzalez. From left to right: John Creswell, District 12 representative; Dorothy Creswell, Chapter 672, New Braunfels; Jane Keller, Chapter 1407, San Antonio NE; Gonzalez; Severiano Pantoja, Chapter 1320, San Antonio NW; Betty Vanderleest, Chapter 1320; and George Rotblut, Chapter 1407.

LEFT: Rep. J. Randy Forbes, right, accepts a NARFE mug from Virginia Area IV Vice President Bobby Whittington after speaking to a meeting of NARFE members from Area IV.

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NOVEMBER 2011 | NARFE

Legislative Report CIVICS 101:

THE INFORMED CITIZEN

Info Available,Feedback Needed

H

igh stakes policy battles will require NARFE to use all of its communications channels to provide information to officers and activists.

Just as important, NARFE members need to provide feedback from Advocacy Month and other contacts with members of Congress and their staff.

HOTLINE AVAILABLE 24/7 Like this magazine, NARFE’s Legislative Hotline is available to each member 24 hours a day on NARFE’s comprehensive website, www.narfe.org. Less well-known is the Hotline’s availability on a toll-free number, 877-217-8234. If you live in the greater Washington, DC, area or have an unlimited long-distance plan, call the Hotline on 703-838-7780.

Phoning the Hotline – using the speaker feature of most cell phones – during a chapter meeting provides a quick legislative update and reminds members of the Hotline’s availability.

GEMS: ENROLLMENT GROWING The NARFE Global Electronic Messaging System (GEMS) is used by National Headquarters, regional vice presidents and federation presidents to distribute Legislative Hotlines and Action Alerts; health and benefits news; and time-sensitive material, such as press releases, newsletters and other NARFE-related news to members. GEMS enrollment continues to grow steadily. To date, 67,817 members have listed an e-mail address in their NARFE record. Listing your e-mail address (see options on page 4) allows you to receive GEMS messages, including the weekly Hotline. .

STORY HIGHLIGHTS ■ The Legislative Hotline is among many NARFE

■

■ ■ ■

information channels. The Hotline provides information 24/7.

The GEMS e-mail network keeps members informed if action is needed. Make sure you are included by providing NARFE your e-mail address.

It’s easy to send messages to your congressional delegation through the Legislative Action Center.

Don’t have a computer? Your local library can help you connect to NARFE. Feedback is power, too. Let NARFE know if you meet with your members of Congress.

offices and voting record on NARFE issues. To access the Legislative Action Center, go to www.narfe.org and scroll down to Legislative Action Center under Legislation in the middle of the Main Home Page. For members who are on Facebook, go to NARFE’s official Facebook page, “Narfe National Headquarters,” and click on “Take Action” in the left panel to see the latest legislative Action Alert.

LOCAL LIBRARY EAGER TO HELP The fastest-growing service at local libraries is bridging the digital divide by connecting patrons to the Internet. The American Library Association reports almost all libraries can assist patrons to connect to a favorite website. Many provide help establishing a free e-mail address. The starting point for NARFE is www.narfe.org, and our Legislative Action Center’s address is www.capwiz.com/narfe/home.

LEGISLATIVE ACTION CENTER

YOUR FEEDBACK VITAL

One of the tools of NARFE advocacy is our Legislative Action Center, where members can find and execute our Featured Alert. This website is also the gateway to “Policy Tools” including: • Issues and Legislation; • Find Media Contacts; • Find Election Info and Candidates; and • Capitol Hill Basics.

Our Legislative Action Center allows you to obtain regularly updated information about members of Congress, their key Capitol Hill staff, committee assignments, district/state

Several federations and chapters have made excellent reports of contact with members of Congress during “NARFE Grass-Roots Advocacy Month.” If you participated in any Advocacy Month outreach to one or more members of your congressional delegation, be sure to report it to both chapter and federation officers and to the Legislative Department.

The Legislative Action Center has a module for this reporting at www.capwiz.com/narfe/lrm/feedback.tt. To send a report as an e-mail message, use leg@narfe.org. If phoning is best, call 703-838-7760, ext. 201.

NARFE | NOVEMBER 2011

By Christopher Farrell, Legislative Representative

19

By Dan Adcock, Legislative Director

SPECULATION SWIRLS AROUND

Supercommittee AS THE NOVEMBER 23 DEADLINE approaches for the Joint Select Committee on Deficit Reduction – the congressional “supercommittee” – to pass legislation to cut the deficit by $1.5 trillion over 10 years, there was much speculation in Washington, DC, on what mix of spending cuts and revenue increases a majority of the panel would support or whether they could agree on anything.

At press time, supercommittee members had not said publicly whether reductions to federal retirement, pay and health benefits would be included in their deficit-reduction bill. However, the president’s decision to add such cuts to a package of reductions announced in September (see page 8) makes the earned compensation of federal workers and annuitants more vulnerable during this process.

Meanwhile, NARFE members continue to put a “face” on the federal workforce for the supercommittee and other members of Congress by sending in photos of themselves, part of NARFE’s “Protect America’s Heartbeat” advocacy and communications campaign (see sidebar, p. 21).

SPENDING CUTS AND REVENUE INCREASES Despite public pressure to reach a compromise, some observers fear that the supercommittee will fail to meet its statutory deadline and suffer the same fate as the president’s Fiscal Commission, the vice president’s “Blair House Group” and the Senate

20

NOVEMBER 2011 | NARFE

Picturing the Federal Workforce: Is Your Photo Here?

A

s the congressional supercommittee makes decisions that could greatly affect federal employees and annuitants,NARFE wants to introduce them to the people whose lives they will impact.Recent polling by the American Federation of Government Employees and the National Treasury Employees Union shows that the best shield against negative articles and perceptions of federal employees is their personal stories of service.

To put a face on the extraordinary work federal employees and retirees perform on behalf of the American public,NARFE is collecting thousands of individual photos of active and retired federal workers. The cover of this month’s NARFE magazine features some of the portraits that the Association received from NARFE members across the country as part of its ongoing “Protect America’s Heartbeat” campaign.

These portraits help illustrate that,collectively,NARFE members have millions of years of service dedicated to protecting and moving forward our nation. They have created opportunities forAmerican entrepreneurship,provided dependable services toAmerica’s seniors,brought criminals to justice, delivered vital mail to every household across the country, developed missile systems that keep us safe at home and invented ways for scientists to explore the farthest reaches of outer space.

Members of the supercommittee value this service,but when their sole focus is budgets and costs,it can become too easy for them to lose sight of the assets of the federal workforce. As they consider the future funding for federal employees,the goal of the Protect America’s Heartbeat campaign is for them to think of the priceless accomplishments of federal employees.

If you haven’t submitted your portrait already,please join this simple and meaningful effort,and send your own photo to portraits@narfe.org.Be sure to include a sign with your name, brief job description,federal agency,and current city and state to remind the supercommittee of how you served your country.

Then you can go to www.ProtectAmericasHeartbeat.org to see your submission and those of your federal colleagues.

NARFE | NOVEMBER 2011

21

“Gang of Six.” Certainly, the main controversy — whether large cuts to mandatory programs like Social Security, Medicare, Medicaid, and federal civilian and military retirement would be coupled with tax increases — continued to divide Republican and Democratic members of the committee.

In September, co-chair Sen. Patty Murray, D-WA, said that there are roughly $1 trillion in special interest breaks and loopholes that permeate the U.S. tax code, and, as a result, the committee must include some tax increases along with spending cuts in its final product. “We have to address both spending and taxes,” Murray said.

In response, co-chair Rep. Jeb Hensarling, R-TX, made clear he was more interested in overhauling the tax code to reduce income tax rates, which he said would generate economic growth.

A tax overhaul had bipartisan support; but given the complexities of the tax code, it was hard to see how the committee could accomplish the ambitious goal by its deadline. Rep. David Camp, R-MI, chairman of the House tax-writing Ways and Means Committee, suggested that the supercommittee could set in motion, but not enact, tax reform. Camp’s counterpart, Sen. Max Baucus, D-MT, chairman of the Senate Committee on Finance, wants his committee and Ways and Means – not the supercommittee — to overhaul taxes. Camp and Baucus serve on the supercommittee.

It was unclear at press time how a commitment to tax reform in the future, instead of actual revenue changes being included in the supercommittee’s bill, would contribute to the more immediate requirement of cutting the deficit by $1.5 trillion.

EXTRA COMPLEXITY Obama’s effort to have the super-

22

committee include his jobs bill and suggested deficit-reduction package in the supercommttee’s final product complicates the panel’s mission. While it is unlikely that all of the proposals in the president’s bill (total cost $477 billion over 10 years) would be added to the supercommittee’s legislation, whatever is included would probably be paid for with additional spending cuts and/or revenue increases. In fact, job creation was much on the minds of panel members, and they debated whether the timing of spending reductions would help or hurt the employment situation.

FAILURE IS AN OPTION As reported previously, if the supercommittee’s legislation does not become law by January 15, 2012, the debtcompromise law would trigger automatic across-the-board spending cuts (also known as “sequestration”) in discretionary and some entitlement programs, starting in 2013. Federal civilian retirement, including cost-of-living adjustments, the Federal Employees Health Benefits Program and federal worker pay would be exempt from the automatic cuts. The same is true of Social Security; most unemployment benefits; veterans’ benefits; interest on the debt; military retirement; and the lowincome entitlements, such as Medicaid (including long-term care benefits), SNAP (food stamps) and Supplemental Security Income. Medicare would be partially exempt from sequestration; program cuts would be limited to 2 percent; and, of that amount, reductions could only be made to the payments reimbursed to health providers and private insurance carriers.

Some advocates representing programs protected from sequestration are hoping that the supercommittee and Congress miss their deadline because the deficit-reduction bill could

be more damaging to their interests.

Although federal civilian benefits are exempt from the automatic cuts, the discretionary spending that is the life blood of federal agencies is not. Absent supercommittee legislation, federal agency salary and expense accounts would take a disproportionate hit, which could affect job security.

While much is working against a supercommittee compromise, the fact that the Defense Department would be subject to sequestration puts tremendous pressure on panel members and Congress to approve a deal. In September, Defense Secretary Leon Panetta (a former Democratic representative from California and former chairman of the House Committee on the Budget) was already raising the specter of “doomsday” for the military, should the supercommittee fail to do its job.

NARFE MEMBER ACTION NARFE continues to take seriously the likelihood that the supercommittee will pass a compromise bill that includes reductions to federal civilian retirement, pay and health benefits.

NARFE members who are represented by a supercommittee member have a special responsibility to write, call and meet with their key legislators as soon as possible. Even if your legislators are not on the supercommittee, the 12 committee members are taking cues from their colleagues as they make critical decisions about the direction of our country. They know that any proposal will have to pass both houses of Congress. NARFE members must continue to tell their lawmakers not to allow federal workers and retirees to be unfairly singled out for cuts in pay and benefits as part of the supercommittee’s deficitreduction legislation. ■

Legislative Counsel Alan Lopatin contributed to this article.

NOVEMBER 2011 | NARFE

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Managing Money

The Roth TSP Option

By Mark A. Keen, CFP®

T

he Thrift Savings Plan Enhancement Act, signed into law in June 2009, paved the way for a Roth 401(k) feature in the Thrift Savings Plan (TSP), beginning sometime in 2012. Unlike Roth individual retirement accounts (IRAs), which limit contributions to only those meeting the income restrictions, the Roth TSP is open to anyone participating in the traditional TSP. Let’s take a look at the differences between the two options and who might benefit from the new Roth TSP. Roth TSP contributions are made with after-tax dollars, so you won’t get an upfront tax deduction as you would with traditional TSP contributions.

However, distributions of Roth TSP contributions and earnings are completely tax-free as long as you are at least age 59-1/2 and have been making Roth contributions for a minimum of five years. On the other hand, distributions of pretax, traditional TSP contributions and earnings are fully taxable. In other words, traditional TSP contributions give you the tax benefit at the beginning, and the Roth TSP contributions give you the tax benefit at the end.

Which plan will benefit you the most depends on your personal circumstances. Generally speaking, if your tax bracket is higher when you take a distribution than it is when you make a contribution, the Roth TSP would be the best option. On the other hand, the traditional TSP would be the better option if your tax rate is lower at the time of withdrawal than at the time you make the contributions.

It’s important to understand that if

24

tax rates are equal – at the time of the contribution and at the time money is distributed – there is no economic difference between the traditional TSP and the Roth TSP. It’s when tax rates change from the time money is contributed to the time it is distributed that can make one option better than the other.

Let’s take a look at a few examples.

First, we’ll assume equal tax rates (25

turn and a 10-year time frame, a $10,000 contribution to the traditional TSP would grow to $20,000. After paying 25 percent in taxes, the after-tax value of the account would be $15,000.

If you contribute to the Roth TSP instead, your contribution would be $6,500 after paying 35 percent in taxes, and the account would grow to $13,000 in 10 years. In this example,

THE THRIFT Savings Plan Enhancement Act paved the way for a Roth 401(k) feature in theTSP. percent) at the time of contribution and the time of distribution. If you contribute $10,000 to the traditional TSP and achieve a 7.2 percent annual rate of return, your account would be worth approximately $20,000 in 10 years. If you withdrew the $20,000 from your TSP, you would owe 25 percent in taxes, leaving you with $15,000.

Next, we’ll assume that, instead of contributing to the traditional TSP, you contribute to the Roth TSP. In this case, you must pay taxes up front, leaving you only $7,500 to contribute to the Roth TSP. Assuming a 7.2 percent annual return, your $7,500 Roth TSP contribution would grow to approximately $15,000 in 10 years – the exact same after-tax value as the traditional TSP. Now let’s look at a few examples when tax rates change. The first illustrates tax rates decreasing from the time of the contribution to the time of distribution – 35 percent and 25 percent, respectively. Assuming a 7.2 percent re-

the traditional TSP wins out.

But what happens if you end up in a higher tax rate in retirement? Let’s assume that your tax rate at the time of contribution is 25 percent, and the tax rate at retirement is 35 percent. As in the previous example, the $10,000 traditional TSP contribution would grow to $20,000 in 10 years; but at the 35 percent tax rate, the after-tax value would be only $13,000. In this scenario, the after-tax contribution to the Roth TSP is $7,500, which would grow to $15,000 in 10 years. The Roth plan then would provide a bigger benefit in an increasing tax rate environment.

Generally speaking, young adults in a lower tax rate who expect their earnings to increase substantially as they progress in their careers should favor the Roth TSP. Conversely, older adults in their peak earning years and higher tax bracket may get more benefit from the traditional TSP. Bear in mind that a multitude of facNOVEMBER 2011 | NARFE

tors can affect the tax rate at both the time of contribution and distribution.

For example, even someone in his or her peak earning years may find that, in any given year, his or her taxable income may drop due to large medical expenses, large charitable contributions or, perhaps, an investment that provides a tax deduction. Any one of these could push you into a lower tax bracket, making the Roth plan an attractive option.

You also should consider whether you’ll need the money during your lifetime. Because Roth plans aren’t subject to required minimum distributions, any money in a Roth plan would continue to grow tax-free over your lifetime and eventually pass to your heirs, who also would be able to enjoy the tax-free benefits of the Roth plan.

We really don’t know what we may be facing 10, 20 or 30 years down the road. For that reason, it’s wise to accumulate money in tax-free Roth plans, tax-deferred plans (such as the TSP) and taxable accounts that can take advantage of the lower capital gains tax rate. If you have what I call tax diversification, you’ll have the flexibility to spend down the accounts, and pass on the other accounts that provide you and your family with the biggest tax advantage.

You can achieve this tax-diversification by contributing to both the traditional TSP and Roth TSP. Or perhaps it makes sense for you to contribute the maximum to the traditional TSP, and, if eligible, contribute to a Roth IRA as well. You can contribute to a Roth IRA as long as your adjusted gross income is less than $179,000 for joint filers and

$122,000 for single filers.

For Civil Service Retirement System participants, the voluntary contribution plan is an excellent way to funnel money into Roth IRAs. You can contribute up to 10 percent of your lifetime federal earnings and then convert your contributions to a Roth IRA tax-free.

The Roth TSP is another tool at your disposal to consider as you plan for an unpredictable future.

Mark A. Keen, CFP®, is president and owner of Bennett Financial Advisors, 3600 Chain Bridge Rd., Fairfax,VA, and an investment adviser representative and registered principal of The Strategic Financial Alliance, Inc. (SFA).

Securities and advisory services are offered through SFA. E-mail: mkeen@tributaryadvisors.com.

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25

LiveWell

Choosing the Right Food

By Marilyn S. Radke, M.D.

F

ood choices affect your risk of developing obesity, heart disease, cancer, type 2 diabetes and other chronic health problems. This year, the Department of Agriculture introduced “MyPlate,” based on the Dietary Guidelines for Americans, 2010.

MyPlate is designed to help consumers make better food choices.

MyPlate uses a place-setting design to emphasize vegetables, fruits, grains, protein and dairy. It complements the dietary guidelines for consumers about balancing calories, increasing some foods and reducing others for more healthful eating.

You may balance calories by avoiding oversized portions and eating less. Think about what goes on your plate, or in your cup or bowl, and aim to get the most nutrients for the fewest calories.

Make at least half your plate consist of vegetables and fruits. Eat darkgreen, orange and red vegetables (kale, spinach, romaine lettuce, broccoli, carrots and tomatoes) in main and side dishes. Eat vegetables, fresh fruits and unsalted nuts as snacks.

Choose whole grains over refined grains. Read the ingredients list on food packages, and choose 100-percent whole grain breads, cereals, pasta, rice and crackers. Select whole wheat or pumpernickel bread over white bread, and brown rice over white rice.

26

Switch to fat-free or low-fat (1 percent) milk, or try calcium-fortified, unsweetened almond milk or soy products as an alternative to milk and dairy foods.

Vary your protein food choices. Eat beans, peas and lentils, which are good sources of fiber and protein. Eat more seafood, and keep meat, poultry and cheese portions small.

Fat, oil and added sugar load food with calories but add no nutrients, and too much salt (sodium) may increase your blood pressure. Try the following to avoid foods high in added fat, oil, sugar and sodium: • Avoid major sources of saturated fats (cheese, sausages, hot dogs, pizza, cookies, cakes and ice cream). Try sausages, hot dogs and burgers made from soy.

• Choose lean cuts of meat or poultry, and fat-free or low-fat milk, yogurt and cheese.

• Switch from solid fats (butter, lard, margarine, shortening) to oils when preparing food, or try water or broth as an alternative to oil when sautéing food. Try puréed fruit (bananas, applesauce or prunes) as an alternative to solid fats in baking.

• Choose water instead of sugary drinks. A 12-ounce soda contains about 10 packets of sugar.

• Select fruit for dessert instead of sugary sweets.

• Choose fresh foods instead of canned when possible. Season food with herbs and spices instead of salt.

Read the Nutrition Facts labels and ingredients lists on food packages to help you select foods lower in calories, fat, sugar and sodium, as follows: • Consider calories per serving size and how many servings you are consuming. If you eat two servings, you double the calories.

• Check the label for fat content and select foods with less than 25 percent of the calories from fat per serving. To avoid trans fat, read the ingredients list, and avoid products containing shortening and partially hydrogenated oils.

• Check the ingredients list for added sugars. Food is high in added sugars when a sugar is close to first on the ingredients list. Other names for added sugars include sucrose, glucose, fructose, corn syrup, high fructose

MyPlate uses a place-setting design to emphasize vegetables,fruits, grains,protein and dairy.

To Learn More

F

or more information, write to the USDA Center for Nutrition Policy and Promotion, 3101 Park Center Drive, Alexandria, VA 22302-1594;or call 888-779-7264;or visit the website at www.choose myplate.gov.

NOVEMBER 2011 | NARFE

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corn syrup and maple syrup.

• Choose foods labeled “low sodium,” “reduced sodium” or “no salt added.” Compare sodium contents of soups, breads and frozen meals, and select foods with lower numbers.

Tips for eating out include: • Start your meal with a salad packed with veggies to feel satisfied sooner. Ask for salad dressing to be served on the side and use only a little.

• Order an appetizer-sized portion or a side dish instead of an entrée.

• Choose main dishes that include vegetables, such as stir fries, kebobs or pasta with tomato sauce. Choose fruits for dessert.

• Order steamed, grilled or broiled dishes instead of fried or sautéed foods.

Add little or no butter to your food.

Avoid creamy sauces or gravies.

• Ask for whole wheat bread and brown rice.

• On long trips, pack fresh fruit, cutup vegetables or unsalted nuts to help you avoid stopping for sweet or fatty snacks.

Lower your risk for heart disease, cancer, diabetes and other health problems by putting more nutritious food on your plate.

Are you in love with your home, but afraid of your staircase?

27

Benefits Checkup

FEHBP Choices in Retirement

By Vanessa Craddock

R

etirement is an exciting time for many, but the prospect of making important benefit decisions can be daunting. As Open Season for federal health insurance begins November 14, let’s review some areas of concern that may affect your health insurance coverage in retirement.

FEHBP PREMIUMS You will pay the same premiums in retirement that you paid while you were an employee for your Federal Employees Health Benefits Program (FEHBP) plan. But because retirees are paid on a monthly basis instead of biweekly, you will pay premiums at the monthly rate. There are some federal agencies that contribute more toward health insurance premiums for their employees; but, in retirement, this generally ends. Part-time employees will pay the same premiums in retirement that full-time employees pay.

It is worth noting that, as an active employee, your premiums are paid on a pretax basis (premium conversion); but this benefit is not available once you retire. In fact, your flexible spending account also will end the day you retire, and only medical expenses incurred by then will be reimbursed.

FEHBP AND TRICARE TRICARE is the health care program serving members of the military, military retirees and their families. When service members move to civilian federal employment, many retain TRICARE coverage. At retirement, these federal employees can use coverage under TRICARE toward the five-year

28

enrollment necessary to continue FEHBP coverage in retirement. The employee must be enrolled in the FEHBP on the date of retirement to continue coverage afterward. This means that the employee must enroll in the FEHBP early enough so that the effective date of enrollment is prior to the date of retirement.

A common mistake occurs when an employee enrolls in an FEHBP plan during Open Season and retires on December 31. Changes made in Open Season for retirees are effective January 1. The employee, therefore, would not have enrollment in the FEHBP.

gram that retirees are eligible to enroll in at age 65. However, Medicare is not mandatory. When you are enrolled in both Medicare and the FEHBP, your total health insurance package may be enhanced after retirement. In many cases, FEHBP plans will pay deductibles, co-payments and coinsurance once you enroll. Although there are four parts to Medicare, most federal retirees find Medicare Parts A and B the most beneficial. Enrollment in Part A makes good sense because you’ve paid for it through Medicare taxes deducted from your pay over the years, and it is premium-free when you enroll. Enrolling in Medicare Part B depends on a number of factors, but a few of the most important are your medical condition now and in the future; your Part B premium, which is based on your income level; your FEHBP plan; and the physicians you choose to see.

Keep in mind that your FEHBP plan will still pay your prescription cov-

YOUR FLEXIBLE spending account will end the day you retire.

FEHBP VS. NONFEDERAL INSURANCE At times, federal employees opt out of the FEHBP because they have health coverage under a spouse’s insurance provided by the private sector. This may be fine while your spouse is employed; but, in many cases, the cost of privatesector health insurance increases upon your spouse’s retirement. In other cases, the private-sector insurance coverage may simply end for you. Be sure to check on the type of health insurance you will have once your spouse retires.

It may be a good idea to enroll in an inexpensive FEHBP plan for your last five years of federal service just to make sure that you will have coverage in retirement, no matter what.

FEHBP AND MEDICARE

Correction

T

he story “Choosing the Right Health Plan” in the October issue (p. 26) erroneously stated that health maintenance organizations (HMOs) have no annual deductible. It should have said:“HMOs charge a copayment for primary physician and specialist visits and generally no deductible or coinsurance for in-hospital care.” NARFE regrets the error.

Medicare is the health insurance proNOVEMBER 2011 | NARFE

FEHBP Checklist for Retirement:

erage; and, if your FEHBP plan’s coverage does not coordinate well with Medicare, you may change plans during Open Season.

SURVIVOR’S COVERAGE Ensuring that a surviving spouse has FEHBP coverage in retirement requires two steps. You should leave a full or partial survivor’s annuity to your spouse so that the FEHBP coverage will continue after your death. You also must be enrolled in a family option at the time of death in order for the health insurance to continue. The Office of Personnel Management will automatically change the option to self-only if your surviving spouse is the only eli-

NARFE | NOVEMBER 2011

1. What will my premiums be after retirement?

2. Will I avoid forfeiting funds in my flexible spending account?

3. Can I take an FEHBP plan in retirement if I haveTRICARE? 4. Will I need an FEHBP plan if I’m covered by my spouse’s insurance?

5. What happens to my FEHBP coverage when I enroll in Medicare?

6.Can my spouse keep FEHBP coverage after I die while retired?

7. Will I have been enrolled in the FEHBP for the five consecutive years immediately preceding retirement or since my first opportunity to enroll? gible family member, and your spouse will remain covered until death or remarriage before age 55.

If you are covered by the FEHBP under your spouse’s enrollment, you will still meet the five-year requirement and may later have the FEHBP coverage put in your own name, should you lose coverage under your spouse’s enrollment or elect self-only coverage.

Remember: Retirement is the time to take stock of the benefits you wish to continue, and health insurance is

one of the most important benefits you will have in retirement.

Vanessa Craddock is an independent human resources professional, providing training and consulting for federal employees. During her tenure with the Office of Personnel Management, she worked as a certified federal benefits specialist, trainer, course developer and manager. She has more than 25 years of experience in federal benefits administration.

29

Civil Service Career Coach

Cooperating With Co-Workers

By Dale S. Brown

G

ood relationships with your fellow employees can bring pleasure to your day and success to your career. But how do you get along with everyone in your office – especially with people who are difficult? To find out, the civil service career coach asked Felicita Solá-Carter, an Excellence in Government Fellows Coach with the Partnership for Public Service.

She is an expert in developing teamwork and leadership skills.

MAKE A CONNECTION Solá-Carter advises civil servants to begin by developing a personal connection. “Ask them about what they display on their desks or in their cubicles, such as family pictures or golf clubs. You might say, ‘You have such a pretty calendar on your desk. Does it have special significance?’ Or ask about their weekend.”

Compliment them on their work and learn about their areas of expertise. Use a comment and a question, such as, “You did a fine job at the presentation. You spoke so well. How did you develop your skills?”

BE AWARE OF DIFFERENCES “There are a variety of temperaments, styles, comfort levels and personalities,” she continues. “Be mindful of their preferences and modify your approach.” For example, introverts can require a different approach than do extroverts.

She shares a story from early in her career. Her team was planning a picnic. “At our first

meeting, the extroverts came up with all kinds of ideas. In 30 minutes, we decided to invite the whole family; we decided what food we wanted (and who would cook it); and we listed about a half-day’s worth of activities. Some team members were silent. We thought they didn’t want to help – or maybe didn’t even want a picnic.

“It turned out that they (the intro-

YOU MUST tell the person about their specific behavior.

Tell them how their actions impact your ability to do your job. verts) did not feel that way at all. It’s just that, as we rattled off our list, we did not allow time for them to put in

Tips for Improving Relationships

H

ere are Felicita Solá-Carter’s suggestions, with sample scripts, for improving your relationships with difficult people.

• The Complainer. First, genuinely listen to the person’s complaint. Then, offer action-oriented advice. If it becomes obvious that he or she is not open to improving the situation, you must step aside and avoid that person.

Sample statement: “I appreciate that you’ve had a hard time with your work.I’ve had a different experience.I feel very positive about my work.I appreciate your perspective,but that is not where I am.”

• The Bully. You must tell the person about their specific behavior. Do not tell them that it makes you sad or unhappy. Tell them how their actions impact your ability to do your job, and let them know the consequence to them. Sample statement: “When you come into my cubicle and interrupt my teleconferences,I can’t hear the other people and can’t meet our deadline. When my cubicle ‘door’ is closed, please come back later.If you interrupt me again,I will have to discuss it at the team meeting.”

• The Unreliable Person. When you realize someone did not keep his or her promise,ask questions and offer to help that person find a solution. Sample statement: “I’m glad that you were willing to help me, but you promised to do‘x,’ and it did not happen.Please tell me what got in the way.”

30

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Your cruise includes the Danube’s highlights including Melk and Vienna, Austria (the classical city of music); Esztergom and Budapest Hungary; Bratislava, Slovakia; and Linz, Austria; before returning to Passau. Travel back to Munich with additional sightseeing, before flying home. Your “brand new” ship the TUI Melodia, constructed in 2011, offers a state-of-the-art, experience!

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Civil Service Career Coach their ideas. We made them feel unimportant. In the next meeting, we let everyone speak and be heard. We had a much better event because of their input.”

Your background affects how you interact with people. “I am Hispanic,” she says. “In the Latin culture, hugging is a natural way to show camaraderie.

But I have to be sensitive. Sometimes I use a handshake – not a hug.”

Older workers, she adds, need to be mindful of generational differences.

“We look at the federal government as a career. Younger people sometimes enter with the idea that they will be there for three years. They might not reply to e-mail as quickly because they prefer texting. Or they might not want to use manuals and want something online.”

Remaining supply discounted 40%

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DEVELOP RELATIONSHIPS By connecting with people personally, understanding differences and being sensitive to how you come across, you can develop relationships that will help you do your job and enjoy it. “We are not independent,” Solá-Carter explains. “We work in a community. If I’m sorting the mail, I have to be on good terms with the people who deliver it and the people who bring it to me. If I have a problem, there are people up and down the organization who know

how to resolve it.”

It might be as simple as someone who says, “If you want something from the boss, ask her now; she is in a great mood.”

Dale S. Brown, nationally recognized for her contributions during her 25 years in the civil service, is the author of five books, including one co-authored with Richard Nelson Bolles, author of What Color Is Your Parachute? E-mail: civilservicecoach@yahoo.com.

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32

NOVEMBER 2011 | NARFE

PEN SEASON REPORT 2012 FEHBP Rates

T

he October issue of NARFE magazine provided preliminary information about this year’s Federal Benefits Open Season. The December issue will contain an analysis of plan changes.

The 2011 Federal Benefits Open Season will begin Monday, November 14, and end Monday, December 12.

Some of the frequently asked questions about the Federal Employees Health Benefits Program (FEHBP) and Open Season are answered in this article.

2012 Monthly Premiums – Fee-For-Service Plan Option

Code

Total Premium

Gov’t Pays

You Pay

Enrollee Increase/ Decrease

APWU High self High family Consumer-Driven self Consumer-Driven family

471 472 474 475

$ 510.47 1,154.23 356.92 802.90

$382.85 865.67 267.69 602.18

$127.62 288.56 89.23 200.72

$ 8.35 18.88 5.06 11.35

104 105 111 112

587.88 1,327.80 487.54 1,141.70

402.46 897.76 365.66 856.28

185.42 430.04 121.88 285.42

-1.76 -1.56 8.51 19.93

401 402

493.96 1,205.10

370.47 897.76

123.49 307.34

.00 1.17

311 312 314 315 341 342

587.49 1,336.14 370.89 843.46 399.86 913.27

402.46 897.76 278.17 632.60 299.90 684.95

185.03 438.38 92.70 210.86 99.96 228.32

8.84 22.70 6.07 13.79 4.76 10.87

454 455 481 482 414 415

611.20 1,398.76 462.28 1,047.45 343.09 817.96

402.46 897.76 346.71 785.59 257.32 613.47

208.74 501.00 115.57 261.86 85.77 204.49

-11.03 -22.47 16.88 38.23 14.29 34.08

321 322

564.24 1,225.36

402.46 897.76

161.78 327.60

1.14 .28

441 442 444 445

661.68 1,558.25 526.85 1,203.26

402.46 897.76 395.14 897.76

259.22 660.49 131.71 305.50

-11.03 -22.47 6.27 19.01

Blue Cross/Blue Shield Standard self Standard family Basic self Basic family

Foreign Serv.Ben.Plan High self High family

GEHA High self High family Standard self Standard family HDHP self HDHP family

Mail Handlers Standard self Standard family HDHP self HDHP family Value Option self Value Option family

NALC High self High family

SAMBA High self High family Standard self Standard family

34

The tables on pages 34 and 35 provide lists of six open-to-all, fee-forservice (FFS) plans and the Foreign Service Benefit plan, as well as the largest participating health maintenance organizations (HMOs), the monthly cost of each plan, and the cost increase/ decrease when compared to 2011 premiums. If your HMO plan does not appear in the listing, it simply means that it is not one of the largest HMO plans as stratified by the Office of Personnel Management’s (OPM’s) plan assignment codes. It does not mean that your HMO plan is a bad plan. In addition, the tables provide the three-digit code for each plan. (When selecting a plan, be sure to use the proper code.) Rates listed are applicable to all retirees and survivors.

Postal employees pay a different rate than other federal employees. Please note: Retirees pay premiums on a monthly basis; employees pay on a biweekly basis. Members with Internet access can go to OPM’s website, www.opm.gov/insure, for a complete listing of premiums for all plans.

The maximum 2012 monthly government contribution will be $402.46 for self-only coverage and $897.76 for family coverage. (See story on p. 36 for NARFE’s reaction to OPM’s announcement of 2012 FEHBP premium rates.)

For 2012, GEHA and Mail Handlers again will offer suboptions that will coordinate benefits with Medicare. Each will contribute to the cost of the enrollee’s Medicare Part B premium in return for the enrollee accepting the same cost-sharing as non-Medicare enrollees.

PLAN CHANGES There were no new plans added to the FEHBP for 2012.

New Service Area Choices. Two NOVEMBER 2011 | NARFE

health plans added new service areas with new enrollment codes for 2012: • Aetna Open Access, in several counties in Kansas and Missouri (Code HY); Aetna Open Access, in several counties in Nevada (Code HF) • Humana Health Plan Inc., in several counties in Tennessee (Code GJ).

Health Plan Terminations. The following health plans will not participate in the FEHBP after December 31, 2011: • Anthem Blue Cross California (Codes M51, M52) • Welborn Health Plan, Indiana (Codes W11, W12) • Bluegrass Family Health HDHP, Indiana, Kentucky (Codes KV1, KV2) • Medica Health Plan, Minnesota (Codes M21, M22) • New West Health Services, Montana (Codes NV1, NV2, NV4, NV5) • Univera Healthcare, New York (Codes Q81, Q82) • Kaiser Foundation HP of Georgia HDHP (Code GW) • Health Alliance HDHP, Michigan (Codes 524, 525).

Enrollment in the terminating plans/ codes ranges from five to 11,354. The reasons for leaving continue the pattern seen over recent years. In most cases, the plans are making business decisions based on enrollment, market penetration and overall margin/profitability. The federal enrollees in these plans need to select new coverage during the 2011 Open Season for contract year 2012.

HMO enrollees should review their plan’s 2012 brochure to see if they still live or work in their plan’s service area.

INFORMATION Active Employees. Federal agencies will provide current employees with Open Season information and sources NARFE | NOVEMBER 2011

for more information. Employees who do not receive Open Season information

by November 14 should contact their personnel or administrative office.

Annuitants and Survivor Annuitants. The federal retirement systems will provide Open Season information

2012 Monthly Premiums – Largest HMOs* State

Plan Option

MD, DC, VA

MD-IPA

CA

Kaiser Foundation N. California High self 591 661.90 High family 592 1,579.96 Standard self 594 554.41 Standard family 595 1,297.29

402.46 897.76 402.46 897.76

259.44 682.20 151.95 399.53

29.04 73.11 21.82 56.81

Kaiser Foundation Mid-Atlantic High self E31 550.46 High family E32 1,266.11 Standard self E34 358.76 Standard family E35 825.15

402.46 897.76 269.07 618.86

148.00 368.35 89.69 206.29

12.91 32.62 7.05 16.24

Kaiser Foundation S. California High self 621 504.31 High family 622 1,165.58 Standard self 624 323.03 Standard family 625 746.59

378.23 874.19 242.27 559.94

126.08 291.39 80.76 186.65

6.35 14.67 4.04 9.34

DC

CA

High self High family

DC, MD, VA

Aetna Open Access

HI

HMSA

High self High family Basic self Basic family High self High family

Code

Total Premium

Gov’t Pays

You Pay

Enrollee Increase/ Decrease

JP1 JP2

$ 568.25 $402.46 $165.79 $ 33.58 1,310.36 897.76 412.60 80.41

JN1 JN2 JN4 JN5

740.42 1,658.48 497.86 1,165.13

402.46 897.76 373.40 873.85

337.96 760.72 124.46 291.28

-10.20 -20.60 6.23 14.57

871 872

473.89 1,054.89

355.42 791.17

118.47 263.72

5.42 12.08

801 802 804 805

NYNJ

GHI Health Plan 656.87 1,642.31 467.26 1,090.81

402.46 897.76 350.45 818.11

254.41 744.55 116.81 272.70

37.61 99.19 10.61 24.79

CA

United Healthcare of California High self CY1 512.42 High family CY2 1,171.39

384.32 878.54

128.10 292.85

9.60 22.34

High self High family Standard self Standard family

*Based on information provided by the Office of Personnel Management. If your plan is not listed, it simply means that your plan is not one of the largest.

35

PEN SEASON REPORT NARFE ‘Relieved’ at Increase Rate

N

ARFE expressed relief that the the average FEHBP premium will rise in 2012 at a rate that’s comparable to that of privateand other public-sector health insurance premiums – 3.8 percent. But NARFE President JosephA.Beaudoin said that even this“modest” increase will cause some federal workers and retirees to struggle. “While employee salaries are frozen for two years as a sacrifice for deficit reduction, and retiree cost-of-living adjustments have not been paid the past two years,their living expenses keep increasing,including the cost of their health insurance premiums,” Beaudoin said.

As in the past, NARFE was critical that the Office of Personnel Management (OPM) did not apply for an incentive payment made to employers that offer their retirees prescription drug coverage as generous as Medicare Part D. “This billion dollar payment could have been used to lower worker and annuitant premium costs,” Beaudoin said. He said NARFE supports an Obama administration proposal that OPM contract with a single pharmaceutical benefits manager to negotiate deeper prescription drug discounts, something NARFE first recommended in 2001 and which is done by the Defense Department for its TRICARE program (see story, p. 8). to all eligible annuitants, survivor annuitants and former spouse annuitants.

For most retirees and survivors, OPM is their retirement system administrator.

(OPM manages the Civil Service Retirement System [CSRS] and the Federal Employees Retirement System [FERS].)

Annuitants, survivor annuitants and

former spouse annuitants who do not receive Open Season notices by November 14 should contact OPM. Your plan will not automatically send you a copy of its 2012 brochure; you must request one or download one from the OPM website.

Annuitants and survivor annuitants

paying FEHBP premiums directly to the National Finance Center will receive Open Season material from that agency.

Federal Compensation. Those whose FEHBP enrollment is handled by the Department of Labor’s Office of Workers’ Compensation Programs will receive Open Season material from that agency.

Effective Date of Changes. All Open Season changes for retirees and survivor annuitants are effective January 1, 2012, and premium changes are reflected in February 1, 2012, annuity payments.

Open Season changes for federal employees are effective at the beginning of the first pay period after January 1, 2012.

Annuitants who join or change HMOs must use the new HMO’s doctors, facilities, etc., beginning January 1.

If verified enrollment is required, the change notice from OPM should suffice.

Any follow-up questions from annuitants related to Open Season should be placed to 888-767-6738. Annuitants in the Washington, DC, metropolitan area must use 202-606-0500.

Retirement Benefits Service Department

Health Benefits Questions & Answers 1.Which is the best plan? There is no one good answer to that question.

People have different health care needs and look for different things in a health benefits plan. A plan can be best for one person but not for another. Statistically, most annuitants have chosen Blue Cross/Blue Shield, Standard, followed by GEHA and Mail Handlers.

2. How should I go about choosing a plan? Review your health care needs for the past year or two and consider the kinds of care you think you may need

36

during the next year. If you or a family member have been using a lot of hospital inpatient care, and you think you will continue to use that kind of care, choose a plan that has excellent hospital inpatient coverage. These include health maintenance organization (HMO) plans and any fee-for-service (FFS) plans with good preferred provider arrangements with hospitals.

If you think you need better coverage for outpatient doctors’ visits, diagnostic tests or prescriptions, choose an HMO or an FFS plan that has good pre-

ferred provider agreements with a wide variety of doctors and labs. Before you change to another plan, obtain and review the brochure for that plan, and check on the availability of preferred providers.

3. Are there waiting periods for benefits, limitations or exclusions on pre-existing conditions? FEHBP plans cannot (by law) impose waiting periods, exclusions or limits on benefits because of a pre-existing condition. There is no medical underwriting in the FEHBP.

NOVEMBER 2011 | NARFE

Before long, it’ll be her turn.

You’ll want to be there.

We make taking care of your health easy, so you won’t miss those big events in life.

Because when you choose GEHA, you get free generic drugs by mail (first fill, most new prescriptions), free LabCard® services and free preventive care exams and screenings in-network. You’ll also pay low copays for office visits and eye exams.

Visit www.geha.com to learn more. Or chat with GEHA President Richard Miles at noon Eastern time on October 25 at www.geha.com.

(877) 549-GEHA • www.geha.com Connect with us: Facebook.com/GEHAhealth Follow us: Twitter.com/GEHAhealth Watch us: Youtube.com/GEHAhealth Thiis is is a br b iief ef de descr crip rip ipt ption of the thhe ffeat eaatur eat uurre res of of Gove o rrnnme ov nment en Em en Empplooye yee eess Heal eaal a th th Ass A soci oc ati ation, on Innc. on, Before Be Bef or mak ore makin ma king a fi f nal all de d cis cision ion on,, pplea lea eaase se rea r d tthhhee G GEEH GEH HA fed ede ddeerall brooch chur ure ree, RI RI 71-0 -006.

-0 006.

06 Al be All benef neffits ne i are arre ssub ubbjject ub ect too th thee defi fiinition nittions, ion io onns, s, lim miita taat atio tion ioons aan and ndd exclu exclusio clusio clu si ns si seett foorth set rt inn th t e feed ede deer eral ral bbrroc ochhure uree.

© 2011 Government Employees Health Association, Inc. All rights reserved.

PEN SEASON REPORT 4. Is it possible to make a serious mistake in choosing a plan? All FEHBP plans are good. All cover hospital and physician care, prescriptions, outpatient diagnostic lab tests, treatment of mental illness, home health care, routine mammograms for women over 35, routine prostate cancer tests for men over 40 and smoking cessation programs. Some also cover special benefits like acupuncture and dental care. In addition, many HMOs provide more comprehensive preventive care (see question 6).

Generally, you can make a serious mistake only if you enroll in: a costly plan or option when you don’t need one (most of you don’t); a plan that doesn’t cover a special benefit when you need it; self-only coverage when you need family coverage, or vice versa; or, if you live outside the continental United States and Puerto Rico, and enroll in a plan that does not offer “overseas” benefits.

5.Which benefit is the most important? For those not enrolled in Medicare Part B, the Catastrophic Protection Benefit is very important. It puts a dollar limit on the amount of money you have to pay out-of-pocket in terms of co-payments and coinsurance for the expenses that the plan covers. Considering the Catastrophic Protection Benefits for a two-option plan, it is not possible generally to recover enough in additional high-option benefits to offset the much higher premiums. However, you should carefully compare the options, especially prescription drug coverage.

6. Should I consider an HMO? Yes. HMOs are available to most employees and annuitants, and offer a good alternative to FFS plans. HMOs cover hospital and physician care and prescriptions, but they stress preventive care,

38

covering routine physicals, immunizations and well-baby care. Many HMOs offer more comprehensive coverage (including dental) at lower premiums than FFS plans. HMO plans tend to be offered more frequently in urban areas and less frequently or not at all in rural areas.

7. Are there disadvantages with HMOs? For most care, enrollees must use doctors and hospitals that are approved by the HMO or with which the HMO has working agreements. Most HMOs require that an enrollee’s care be coordinated by a primary care physician. Compared to FFS plans, enrollee access to specialists is more limited under an HMO plan. HMOs generally limit benefits outside of their full service areas to emergency services only. Sometimes, HMO plans that participate in the FEHBP are harder to find in rural areas.

Doctors’ contracts with HMO plans do not necessarily run from January 1 through December 31, which means that a plan doctor may leave the plan during the FEHBP contract year.

8. How can HMOs offer such good coverage at reasonable cost? The very tight control measures mentioned in question 7 enable HMOs to control their costs and premiums. FFS plans have different kinds of controls, the most notable of which is Preferred Provider Organization (PPO) networks.

9.What kinds of changes can an annuitant make during this Open Season? Annuitants can change plans, options, type of enrollment (self-only or family) or any combination of those changes. Annuitants can, for example, change from Plan A’s high option, self-only coverage to Plan B’s standard option, family coverage. If an annuitant has suspended his or her FEHBP coverage to enroll

in a Medicare Advantage plan, TRICARE, TRICARE For Life, CHAMPVA or Medicaid, or is a Peace Corps volunteer, he or she may revoke the suspension by re-enrolling in the FEHBP. (Always check with the “losing” plan to see if there are any dis-enrollment procedures to follow.)

10. Can I change plans, options or type of enrollment (self-only or family) at times other than Open Season? Yes. There are events that permit one or more of these changes, such as a change in marital status or moving outside the service area of the HMO in which you are enrolled. See question 17 for more information.

11. What is a Preferred Provider Organization (PPO)? A PPO consists of agreements between a health benefits plan and hospitals, doctors, laboratories and other medical care providers. Under the agreements, the preferred providers agree to provide services to the plan’s enrollees and covered family members at a lower cost. Health plan contracts with PPOs do not necessarily run through the course of the FEHBP contract year. This means that an organization that was a PPO on January 1 and has a PPO agreement that expires during the course of the year would go into renegotiation with the health plan.

If the negotiations are successful, the medical provider continues its PPO status with the plan. If the negotiations are not successful, the PPO relationship is broken, and plan beneficiaries must seek other PPOs for medical services.

12. What are the advantages of preferred provider programs? They help keep the plan’s benefit payments and your premiums down.

13.What are the advantages of using NOVEMBER 2011 | NARFE

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PEN SEASON REPORT a mail order (also referred to as home delivery) prescription drug service?

14. Should annuitants enroll in Medicare when they become eligible? In

Mail order prescription services enable plans to provide prescription drugs at lower (wholesale) prices, resulting in savings to both the plans and you. Mail order services also have extra quality controls that generally aren’t available through local retail pharmacies. Also, the mail order service controls when a prescription should be refilled, based on your doctor’s written prescription.

many cases, the answer is “yes.” The combination of a low-cost, standard option, FFS FEHBP plan and Medicare Parts A and B provides excellent total coverage of medical services. However, be sure to check both options concerning prescription drugs, where there may be significant differences. The consideration in these cases is the cost of Medicare Part B coverage, for which

each eligible individual must decide whether to enroll (there is no family coverage under Medicare). Although many FFS plans waive their deductibles, coinsurance and co-payments (except for prescription drugs) for enrollees covered by Part B, the question is whether a person will save money by signing up for Medicare Part B and have very limited out-of-pocket costs, or will a person save money by not signing up for Part B and paying his or her deductibles, coin-

Important Reminders for Retirees

H

ere are some important reminders and tips for annuitants on the upcoming 2011 Open Season.

• Open Season Notification. This year, the Office of Personnel Management (OPM) will send annuitants notification by mail or electronically if you have provided OPM with your e-mail address. Both notices will provide details on the Open Season and guidance on how to obtain information and materials.

• Plan Participation. Make sure your current plan will participate in the Federal Employees Health Benefits Program for 2012. This is especially important if you are currently enrolled in a health maintenance organization plan.

• Staying Put. After reading your current plan’s brochure – particularly the changes and premiums for 2012 – if you decide to continue your current coverage, you do not have to do anything. Your enrollment in your current plan will continue into 2012, and the new premiums will be deducted from your February 1, 2012, monthly annuity payment.

• Low Annuity. If your monthly annuity is not enough to cover your plan’s 2012 premiums, you must either change to a less costly option or change to a plan that you can afford. You also may pay your monthly premiums directly to OPM, if you want to stay with your current plan but your monthly annuity is not sufficient to withhold the premium amount.

• Research Preferred Providers. Fee for service (FFS) plans use preferred provider organizations (PPOs) and doctors to help contain program costs and keep premiums at a reasonable rate. Usually, you will save a lot on

40

out-of-pocket costs if you use your plan’s preferred hospitals or doctors. However, PPO arrangements are business contracts that are not always renewed. PPO arrangements can be made and also can be discontinued from one year to the next. In addition, there may not be PPO arrangements in all parts of the country. If you are enrolled in an FFS plan or thinking of enrolling in one, you should check with the hospitals and doctors you use and ask them if they are a PPO in your plan. You also can review your plan’s PPO directory to see if your doctor or hospital is a PPO for your plan.

• Ask Questions. Be careful to confirm information in your plan’s brochure by speaking with a plan representative. Do not assume anything. For example, plans may describe benefits in terms of “annual” or “annually.” This would seem to mean “each year,” when, in fact, the plan may mean that a year must have elapsed before the plan will cover you again.

• ID Cards.New plan identification cards showing your enrollment are sent out by the health plan, not by OPM. If you do not change to another plan or option during Open Season, you don’t necessarily get a new ID card from the plan.

• Medicare Enrollees. Make sure that you read your plan brochure’s sections titled “When you have Medicare” and “Coordinating benefits with other coverage.”

• Age 65 and Not Enrolled in Medicare. FFS plans include a section in their brochures titled “When you are age 65 or over and do not have Medicare.” This section details how, by law, the plan must use Medicare’s approved amounts on which to base its payments. ■ NOVEMBER 2011 | NARFE

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When you have Medicare as your primary insurance and the High Option, you generally pay no copays or coinsurance. Enjoy the freedom to see any doctor or go to any hospital without the worry of being in a specific network. For more information on the High Option or the APWU Health Plan please visit our website at: www.apwuhp.com.

The High Option Features: Zero out-of-pocket costs for Diabetes Care Zero out-of-pocket costs for Hypertension Care Zero out-of-pocket costs for Smoking Cessation Zero out-of-pocket costs for Routine Preventive Screenings Zero out-of-pocket costs for Routine Care NEW! Weight Management Program- Enroll and actively participate in the program and see a dietician or nutritionist with no out-of-pocket costs. * See our federal brochure (RI 71-004) for exclusions and limitations

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PEN SEASON REPORT surance and co-payments? This decision is one that will be dictated by the individual circumstances of the FEHBP enrollee and covered family members.

If you are enrolled in an HMO that covers most of your medical care with only small co-payments (such as $20 per doctor’s visit) and if you plan to remain in an HMO indefinitely, there probably would be little advantage in enrolling in Part B. Medicare Part B would not add enough to your total package of benefits to justify paying the higher premium.

HMO enrollees who travel extensively in the United States may want to sign up for Part B, since it would allow them to get nonemergency medical services outside of the HMO’s service area. Or, an HMO enrollee might want to have Part B so that he or she could go “out of network” to consult specialists without a referral from the primary care physician. Note that these flexibilities do not exist for people who are enrolled in Medicare Advantage plans. In those cases, Medicare Part B can only be used at the Medicare Advantage plan.

However, if you change to an FFS plan at some future date, Part B would be helpful. You could enroll in it during a Part B open enrollment period (January through March of each year).

While it would cost you more, the savings that you realize by not paying the Part B premium would likely offset any premium surcharge you would have to pay. The premium surcharge is 10 percent of the monthly Part B premium for each 12-month period that you could have been enrolled in Medicare Part B but were not. This surcharge is permanent and is recalculated every time the Medicare Part B premium increases.

More and more people are becoming concerned about the number of HMO plans that are leaving the FEHBP or

42

have left over the past few years. If you are retired and live in an area where there is only one FEHBP HMO, you may want to consider enrolling in Medicare Part B as a hedge against the future. Or you may want to consider switching to an FFS plan at age 65 and enrolling in Medicare Part B when you are first eligible. This will enable you to avoid the Medicare Part B late enrollment surcharge in the future.

In addition, no one can predict where he or she will live in the future.

Accordingly, HMO enrollees may also want to consider signing up for Medicare Part B as a further hedge against future events. An HMO enrollee who lives in a large metropolitan area with many HMO choices may have to move to a more rural area where HMO choices are limited or do not exist to care for a family member. Or the HMO enrollee may become ill and have to move to a more rural area to be cared for by his or her family members. In such cases, Medicare Part B can act as a hedge against the future for an HMO enrollee who has to sign up for an FFS plan because of the lack of an HMO option.

15. How do I apply for Medicare Part B? If you are not receiving Social Security payments, you should call 800-7721213 three months before the month in which you reach age 65 and request an appointment with your local Social Security office to file an application for Medicare. If you are receiving Social Security payments, Social Security will automatically send you a Medicare card enrolling you in Medicare Part A and Medicare Part B. If you decide that you do not want Part B, you must contact Social Security. If you don’t want Part B, return the card to the office that sent it to you and be sure to indicate on the card that you wish to cancel Part B.

Depending on when you retired from federal service (1983 or later), or if you have 10 years of Social Security work coverage, or if you paid Medicare taxes for 10 years, or if you are married to a person who is eligible for Medicare, you could qualify for premium-free Medicare Part A for hospitalization. Of course, all Medicare Part B enrollees have to pay a premium for Part B coverage. At press time, Medicare had not officially announced the premiums for Part B, but we expect them to go up.

16. How do I obtain FEHBP coverage for my grandchild who lives with me and is financially dependent on me?

Grandchildren, per se, are not eligible dependents under your FEHBP enrollment. However, if the grandchild lives with you in a parent-child relationship, is financially dependent on you, and you have a reasonable expectation of raising the grandchild into adulthood, a grandchild can be considered your foster child and can be covered under your FEHBP family enrollment. To have a grandchild covered as a foster child, contact the OPM Retirement Benefits Branch, 1900 E St. NW, Washington, DC 20415-3532.

17. Who do annuitants contact at OPM about changing their FEHBP enrollment? For Open Season changes, call the Open Season Express number provided in your FEHBP Open Season notice, log on to Open Season Online at the Internet address provided in your Open Season notice or contact the Open Season Processing Center at the address provided in your Open Season notice. The Open Season notice will be mailed to annuitants in early November. Those receiving information by e-mail from OPM will receive their notice at about the same time.

NOVEMBER 2011 | NARFE

Yourwas mom right.

Getting enough calcium is critical to maintaining a lifetime of good dental health. So is having the right dental plan. When you choose GEHA Connection Dental Federal®, you’ll receive a new $5,000 higher maximum benefit for each family member in the High Option plan.

To enroll during Open Season, visit www.BENEFEDS.com.

Join our online chat with GEHA President Richard Miles.

Tuesday, October 25, noon Eastern time at www.gehadental.com

(877) 590-GEHA • www.gehadental.com Connect with us: Facebook.com/GEHAhealth Follow us: Twitter.com/GEHAdental © 2011 Government Employees Health Association, Inc. All rights reserved.

PEN SEASON REPORT For information about changes or to make changes at other times of the year, annuitants should call 888-7676738 or write to the OPM Retirement Benefits Branch, 1900 E St. NW, Washington, DC 20415-3532. Annuitants in the Washington, DC, metropolitan area must use 202-606-0500.

brochure telling you that your FEHBP prescription drug benefit is at least as good as or superior to Medicare’s. If you decide to sign up later for Medicare Part D, the brochure certification of your prescription drug coverage will excuse you from any Medicare Part D late enrollment penalty.

18. If I have my FEHBP health plan coverage, do I need to sign up for Medicare Part D prescription drug plan benefits as well? Your prescription drug benefits

19. What is an HDHP/HSA? HDHP

under the FEHBP are at least as good as or better than the prescription drug benefits under Medicare. You do not need to sign up for Medicare Part D or even consider a Part D plan unless you have high out-of-pocket drug costs after your FEHBP plan pays. OPM has issued a statement in your FEHBP plan

stands for high-deductible health plan.

Anyone who is enrolled in an HDHP may be eligible for a health savings account (HSA) or health reimbursement arrangement (HRA). HDHP monthly premiums may be lower than traditional FFS or HMO plans. However, such coverage may not be appropriate for retirees or those with higher annual medical costs. HSAs and HRAs allow HDHP enrollees to set money aside to

pay for out-of-pocket health care costs.

An HDHP enrollee is encouraged to be prudent about his or her health care treatment and expenditures.

20. How will an HDHP/HSA or an HRA help the FEHBP member? An HDHP/HSA or HRA provides insurance coverage and catastrophic coverage in a tax-advantaged way to help save for future medical expenses. It provides greater flexibility and discretion over how to use your health care dollars. However, if you or a member of your family get very sick, you will have to pay your health plan’s deductible and your coinsurance, which could be as much as $10,000 in out-ofpocket expenses in a calendar year.

Retirement Benefits Service Department

Federal Employees Dental and Vision Insurance Program(FEDVIP) This information was provided by the Office of Personnel Management.

T

he Federal Employees Dental and Vision Insurance Program (FEDVIP) is a supplemental dental and vision program authorized by the Federal Employee Dental and Vision Benefits Enhancement Act of 2004. It is separate and different from the Federal Employees Health Benefits Program (FEHBP).

OPM has contracted with 10 insurance carriers to provide comprehensive coverage under the program.

There are seven dental plans: Aetna Life Insurance Company; Humana/ CompBenefits; Government Em-

44

ployees Health Association, Inc. (GEHA); Group Health, Inc. (GHI); MetLife, Inc.; Triple-S, Inc.; and United Concordia Companies, Inc.

There are three vision plans: FEP BlueVision (Blue Cross/Blue Shield), UnitedHealthcare Vision Plan and Vision Service Plan (VSP).

Key FEDVIP Facts • FEDVIP is separate and different from the FEHBP. • Coordination of benefits with the FEHBP plan, if enrolled in an FEHBP plan, is a requirement under the FEDVIP law. The FEDVIP plan is secondary to the FEHBP plan.

• Premiums for the nationwide dental plans and one regional dental plan are based on home ZIP codes. This is called a rating region. Vision plans do not have rating regions.

• There is no 31-day extension of coverage, Temporary Continuation of Coverage (TCC), spouse equity coverage or right to convert to an individual policy (conversion policy).

NOVEMBER 2011 | NARFE

DENTAL INSURANCE Dental plans will provide a comprehensive range of services, including the following: • Class A (Basic) services, which include oral examinations, prophylaxis, diagnostic evaluations, sealants and Xrays.

• Class B (Intermediate) services, which include restorative procedures such as fillings, prefabricated stainless steel crowns, periodontal scaling, tooth extractions and denture adjustments.

• Class C (Major) services, which include endodontic services such as root canals, periodontal services such as gingivectomy, major restorative services such as crowns, oral surgery, bridges and prosthodontic services such as complete dentures.

UHC3225 9/13/11 • Class2011NARFEnov.dec D (Orthodontic) services

with up to a 24-month waiting period.

Please review the dental plans’ benefits material for detailed information on the benefits covered, costsharing requirements and provider directories.

Who is eligible to enroll in FEDVIP? Federal and U.S. Postal Service employees eligible for FEHBP coverage (whether or not enrolled) and annuitants (regardless of FEHBP status) are eligible to enroll in a dental plan and/or a vision plan.

VISION INSURANCE Vision plans will provide comprehensive eye examinations and coverage for lenses, frames and contact lenses (in lieu of eyeglasses). Other benefits such as discounts on LASIK surgery may also be available. There are no deductibles or waiting periods.

Please review the vision plans’ benefits material for detailed information on the benefits covered, cost-sharing requirements and provider directo11:01 ries. AM Page 1

Affordable Progressives Are Here.

What enrollment options are available? The following options are available: • Self-only. This option covers only the enrolled employee or annuitant; • Self-plus-one. This option covers the enrolled employee or annuitant plus one eligible family member specified by the enrollee; and • Self-and-family. This option covers the enrolled employee or annuitant and all eligible family members.

Lower Premiums for 2012!

The average retail price for deluxe and platinum style progressive lenses is $440.00.

However, if you’re enrolled in a High Option Plan from UnitedHealthcare Vision, these same lenses will cost only a $65.00 copay! Whatever your individual or family need is we have an industry-leading vision plan for you.

FEDVIP Open Season: November 14 -December 12

2012

www.myuhcvision.com/fedvip 1-866-249-1999

NARFE | NOVEMBER 2011

®

UnitedHealthcare Vision® coverage provided by or through UnitedHealthcare Insurance Company, located in Hartford, Connecticut, or its affiliates. Administrative services provided by Spectera, Inc., United HealthCare Services, Inc. or their affiliates. Plans sold in Texas use policy form number VPOL.06 and associated COC form number VCOC.INT.06.TX.

45

PEN SEASON REPORT Which of my family members are eligible? Eligible family members include your spouse, unmarried dependent children under age 22, and unmarried dependent children age 22 or over incapable of self-support because of a mental or physical disability that existed before age 22.

How can I find out about the plans that are available? The Open Season notice that OPM will mail you includes information on FEDVIP. You can also find a comparison of the plans available and their premiums on the OPM website at www.opm.gov/insure/ dentalvision. This site will be available before Open Season begins. This site also provides links to each plan’s website, where you can view detailed information about benefits and preferred providers.

What are the premiums? The premiums will vary by plan and by enrollment type (self, self-plus-one, or self-and-family). Premiums for the nationwide dental plans and one regional dental plan are based on home ZIP codes. There is no government contribution to the premiums.

If you are an active employee, your premiums will be taken from your salary on a pretax basis when your salary is sufficient to make the premium withholding.

If you are an annuitant, premiums will be withheld from your monthly annuity check when your annuity is sufficient. Based on the Internal Rev-

O

enue Service Code, pretax premiums are not available to annuitants. For information on each plan’s specific premiums, visit www.opm.gov/insure/ dentalvision.

Rating areas. For most dental plans, there are five rating areas for each carrier. Please note that the rating areas for each carrier are not the same for all plans. Please see the specific plan brochure or call the plan’s customer service number to determine your specific region and premium.

When will coverage be effective? Coverage for those who enroll during this year’s Federal Benefits Open Season (November 14-December 12, 2011) will be effective January 1, 2012.

When can I enroll? Eligible employees and annuitants can enroll, cancel or change enrollment in a dental and/or vision plan during this Open Season — November 14 to December 12, 2011.

You can enroll, cancel or change your enrollment during subsequent annual Open Seasons or because of a qualifying life event. New employees will have 60 days from their first eligibility date to enroll.

How do I enroll? Employees and annuitants can enroll on the Internet at www.BENEFEDS.com. BENEFEDS is a secure enrollment website sponsored by OPM where you enter your name, personal information such as address and Social Security number, the agency you work for (or retirement plan that pays your annuity), and the dental and/or vision plan you select.

For those without access to a computer, call 877-888-FEDS (877-

PEN SEASON REPORTS

46

888-3337); TTY, 877-889-5680.

You cannot enroll in a FEDVIP plan using the Health Benefits Election form (SF 2809) or through an agency self-service system, such as Employee Express, MyPay or Employee Personal page. However, those sites may provide a link to www.BENEFEDS.com.

COMING IN DECEMBER: Plan Changes and Prescription Drug Guide

If I am currently enrolled in an FEHBP plan, will I be required to enroll in a dental or vision plan offered by my FEHBP carrier? No. Your FEHBP plan is separate from the dental and vision insurance program. You may enroll in any dental or vision plan.

My FEHBP plan covers some dental and vision services. If I enroll in a FEDVIP plan, will that replace my FEHBP coverage? No. Any coverage provided under your FEHBP plan remains as your primary coverage.

FEDVIP coverage would pay secondary to that coverage.

How does this coverage work with my FEHBP plan’s dental or vision coverage? Some FEHBP plans already cover some dental and vision services.

Coverage provided under your FEHBP plan remains as your primary coverage.

When you enroll in a dental and/ or vision plan using the website www.BENEFEDS.com, you will be asked to provide information on your FEHBP plan so that your plans can coordinate benefits. Providing your FEHBP information may reduce your out-of-pocket costs. ■ NOVEMBER 2011 | NARFE

Questions & Answers NOTE: The following Questions & Answers were compiled by Retirement Benefits Service Department staff. These are real questions received by the Department and real answers, based on the members’ personal circumstances.

The answers are not universal and may include information that is relevant to the correspondent’s particular situation. NARFE does not provide legal advice or assistance, does not provide financial planning advice or assistance, and does not provide tax advice or assistance. For legal, financial planning or tax advice/assistance, NARFE recommends members contact an attorney, financial planner or certified public accountant/tax adviser.

RETIREES INTERIM ANNUITY QUESTION: Are any deductions withheld from my interim annuity payments?

Response: The Office of Personnel Management (OPM) will only withhold federal income tax. You may find that the federal income taxes withheld from your first interim payment will be higher than the federal tax withholdings from your subsequent interim payments and regular annuity. OPM will make any necessary tax-withholding adjustment when it finishes processing your application. Your health and life insurance coverage will continue while you are receiving interim pay. Once OPM has finished processing your application, it will begin withholding health and life insurance premiums retroactive to the commencing date of your annuity.

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SURVIVOR’S INSURANCE QUESTION:My wife is not under my Federal Employees Health Benefits Program (FEHBP) plan, as she has her own private health insurance.But she is covered by my federal dental insurance. She will be entitled to a survivor’s annuity. Will she be able to continue in the Federal Employees Dental and Vision Insurance Program as a surviving spouse?

Response: If you are a survivor of a deceased federal or U.S. Postal Service employee or annuitant and receiving an annuity, you may enroll or continue the existing enrollment. Your spouse may enroll or continue the existing coverage upon your death because she is entitled to a survivor’s annuity.

MEDICARE PREMIUMS QUESTION: I am paying more than $115.40 in Medicare premiums because of means testing. However, I had only one year in which I was above the modified adjusted gross income (MAGI) and most likely will never exceed the limit again.

How long do I have to pay the higher premiums?

Which tax return does the Social SecurityAdministration (SSA) use to make the determination? What if my income has gone down?

tax return. Generally, this information is from a tax return filed in 2010 (for tax year 2009). Sometimes, the Internal Revenue Service (IRS) only provides information from a return filed in 2009 (for tax year 2008). If the SSA used tax year 2008 data, and you filed a return for tax year 2009 or did not need to file a tax return for 2009, call the SSA or visit any local Social Security office. The SSA will update your records. If you amended your tax return, and it changes the income the SSA uses to determine the income-related monthly adjustment amount, let the SSA know.

The SSA will need to see a copy of the amended tax return you filed and your acknowledgment receipt from the IRS. The SSA will update your records with the information you provide, and correct or remove your income-related monthly adjustment.

If your income has gone down due to any of the following situations, and the change would make a difference in the income level the SSA considers, contact the SSA to explain that you have new information and may need a new decision about your income-related monthly adjustment amount: • You married, divorced or became widowed; • You or your spouse stopped working or reduced your work hours; • You or your spouse lost incomeproducing property due to a disaster or other event beyond your control; • You or your spouse experienced a scheduled cessation, termination or reorganization of an employer’s pension plan; or • You or your spouse received a settlement from an employer or former employer because of the employer’s closure, bankruptcy or reorganization.

QA &

Response: In 2011, if you file your taxes as “married, filing jointly” and your MAGI is greater than $170,000, you would pay higher premiums for Part B. If you file your taxes using a different status, and your MAGI is greater than $85,000, you also would pay higher premiums.

To determine your 2011 income-related monthly adjustment amount, the SSA will use your most recent federal

NOVEMBER 2011 | NARFE

NARFE SERVICE OFFICERS are available to answer questions and to assist in If any of the above applies to you, the SSA would need to see documentation verifying the event and how it has reduced your income. The documentation you provide should be related to the event and may include a death certificate, a letter from your employer about your retirement or something similar. If you filed a federal income tax return for the year in question, you would need to show the SSA your signed copy of the return.

SURVIVOR’S REMARRIAGE QUESTION: My husband died a few years ago, and I am receiving a survivor’s benefit. I am thinking about remarrying. What will happen to my benefit if I remarry?

Response: If you remarry before age 55, your survivor’s annuity would termi-

NARFE | NOVEMBER 2011

helping with a variety of benefit matters. Check your chapter newsletter for the name and phone number of your service officer. Call NARFE toll-free at

800-456-8410 for the nearest service officer. NARFE Service Centers are also available in some areas. Use the Service Center listings on the NARFE website, www.narfe.org.

nate. In 1995, an exception to this provision was passed, which allowed survivors who were married for more than 30 years to continue their annuities regardless of the age at which they remarried. Also, anyone who remarries after age 55 may continue his or her annuity, and it will not be terminated.

SPOUSE INSURANCE QUESTION:I retired under the Civil Service Retirement System and am age 64. I have Blue Cross/Blue Shield

(BC/BS) health insurance under the Federal Employees Health Benefits Program. My wife, who is age 60, is a career homemaker. If I decide to enroll in Medicare,what will be the status of my wife’s health insurance coverage?

For instance, will BC/BS remain the primary insurer for her?Will she also have to make an election regarding Medicare when she reaches age 65?

Response: Your spouse will have only BC/BS, which will be primary for her until she reaches age 65. She also will

49

Questions & Answers have to make a decision about enrolling in Medicare at that time. Like you, she will be able to pick up Part A at no cost, and then she will need to decide whether she wants to enroll in Part B.

plan to retire in six months when I reach age 62. I also plan to apply for Social Security at that time and will continue to work part time. Will working affect my Social Security benefit?

TSP WITHDRAWALS

Response: Sometimes, people who retire in midyear already have earned more than the yearly Social Security earnings limit. But there is a special rule that applies to earnings for one year, usually the first year of retirement.

Under this rule, you can get your full Social Security benefit. If you are younger than full retirement age during all of 2011, the Social Security Administration will deduct $1 from your benefits for each $2 you earned above $14,160 for any whole month you are retired, regardless of your yearly earnings.

In 2011, a person under full retirement age for the entire year is considered retired if monthly earnings are $1,180 or less. For example, John Smith retires at age 62 on October 30, 2011.

He will make $45,000 through October.

He takes a part-time job beginning in November, earning $500 per month. Although his earnings for the year substantially exceed the 2011 annual limit ($14,160), he will receive a Social Security payment for November and December. This is because his earnings in those months are $1,180 or less – the monthly limit for people younger than full retirement age. If he earns more than $1,180 in either of those months (November or December), he would not receive a benefit for that month. Beginning in 2012, only the yearly limits would apply to him.

QUESTION:I will soon be age 70-1/2 and would like to make a minimum distribution withdrawal from my Thrift Savings Plan (TSP) account.

How do I do this?

Response: You need to complete form TSP-70 and send it to the TSP. Remember your withdrawal deadlines.

You are required to withdraw your account balance in a single payment, begin receiving monthly payments or begin receiving annuity payments by April 1 of the later of: • The year following the year you become age 70-1/2; or • The year following the year you separate from federal service or the uniformed services.

If you do not withdraw or begin withdrawing your account by the required deadline, your account balance will be forfeited to the TSP. You can reclaim your account; however, you won’t receive earnings on your account from the time it was forfeited.

In the event that you underestimate the amount of your required payment, the TSP will send you a check at the end of the year for the difference. Go to the TSP website, TSP.gov, and search for the TSP Tax Notice, TSP-775, “Important Tax Information About Your TSP Withdrawal and Required Minimum Distributions.”

ACTIVE EMPLOYEES SS EARNINGS LIMIT QUESTION: I am under the Federal Employees Retirement System and 50

MANDATORY RETIREMENT QUESTION:I am a law enforcement officer under the Federal Employees Retirement System (FERS). What are the advantages of working until my

mandatory retirement age?

Response: You become eligible for an annuity at age 50 with 20 years of covered service or at any age with 25 years of service. Your mandatory separation age is 57. Since you contribute 1.3 percent of your basic pay into the retirement fund, as opposed to 0.8 percent for regular FERS employees, your benefits are more generous. You receive 1.7 percent of your high-three average salary for the first 20 years of service and 1 percent of your high-three average salary for the remaining years. For example, if you work for 25 years, you would receive 39 percent of your highthree average salary. You also receive an immediate cost-of-living adjustment (COLA), unlike regular FERS employees who do not receive a COLA until they turn age 62. If you retire before you reach your minimum retirement age and begin to receive an immediate FERS supplemental annuity, you may continue to work and not be subject to the earnings limitation test until you reach your minimum retirement age.

REDEPOSITS QUESTION: I worked for the government under the Federal Employees Retirement System (FERS) from 1993 to 1997. I took a refund of my retirement contributions. I was told that I could not make a redeposit for my FERS service and would not receive credit for this service if I returned to the federal government.One of my coworkers told me that this rule had changed.Is this true?

Response: Since the law changed in October 2009, FERS employees with previous FERS service who left federal service and withdrew their FERS contributions are now eligible, upon re-entering federal service, to redeposit their withdrawn FERS contributions. You must make a full redeposit, which inNOVEMBER 2011 | NARFE

Vinson Hall Retirement Community

cludes the amount of your refund plus interest. You would receive credit toward your retirement eligibility and in the computation of your FERS annuity for your previous years of service covered by the redeposit.

BUYOUTS QUESTION: I am considering taking a buyout of $25,000. Would accepting a buyout affect any future federal service should I decide to return?

Response: Those separating under a buyout are barred from taking other federal employment for five years unless they repay the entire amount of the buyout. There are a few exceptions to the rule, and some agencies will waive the requirement to repay the buyout.

Waivers are very rare, however, and you would need to contact the agency you may be interested in to see if that agency makes an exception.

APPLY FOR SS BENEFIT? QUESTION: I am age 65 and still working.I plan to retire from the federal government in a few years.

Should I apply for my Social Security benefit now or will my benefit be offset by the earnings limitation test?

Response: You would need to make your own decision about when you want to start getting Social Security benefits, depending on your particular situation. This is how the earnings limitation test works: If you are under your full retirement age when you start getting your Social Security benefit, $1 in benefits would be deducted for each $2 you earn above the annual limit. For 2011, the limit is $14,160.

In the year you reach your full retirement age, $1 in benefits will be deducted for each $3 you earn above a different limit, but only counting earnings before the month you reach full retirement age. For 2010 and 2011, the NARFE | NOVEMBER 2011

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Questions & Answers limit is $37,680.

Starting with the month you reach your full retirement age, you will get your benefits with no limit on your earnings; and, once your reach your full Social Security retirement age, you will receive your full benefit without an offset. So you may want to wait to start receiving your benefit until you reach your full retirement age.

Keep in mind that Civil Service Retirement System and CSRS Offset employees may be subject to the windfall elimination provision (WEP) and may have their Social Security benefits reduced after retirement. It is important that you contact the Social Security Administration (SSA) when you retire so that it can reduce your benefit, if necessary. Many people, unaware of this provision, have not notified the SSA and

had to repay thousands of dollars when the SSA discovered the error.

If you start receiving your benefit while you are still working, be sure to contact the SSA when you retire so that the agency can apply the WEP, and you won’t be hit with a large overpayment.

TSP WITHDRAWALS QUESTION: Can I withdraw money from myThrift Savings Plan (TSP) account immediately when I retire?

Response: You can submit the paperwork, but don’t expect to receive your TSP funds immediately. The TSP Service Office cannot process a withdrawal election until it receives an Employee Data Record from your payroll office indicating that you have separated. It normally takes agencies 60 days to get the data to the TSP. Then, it

may take up to eight weeks to process a withdrawal after all withdrawal forms and separation data have been received by the TSP Service Office.

HEALTH INSURANCE QUESTION:I know that I must have health insurance for five years prior to retirement in order to carry it with me into retirement. After I retire, can I enroll in a family plan, or do I have to be enrolled in a family plan for the five years before I retire in order to continue it into retirement?

Response: You may be enrolled in a selfonly plan for the five years immediately preceding your retirement date. Then, you would be able to enroll in a family plan during Open Season or outside of Open Season if an event occurs that permits a change to the family option.

To obtain an answer to a retirement benefits question, call 703-838-7760 and ask for the Retirement Benefits Service Department; send your question by postal mail to NARFE Headquarters, ATTN: Retirement Benefits; or submit it by e-mail to retbenefits@narfe.org.

Correction

I

n the September 2011 issue, the response to the question titled “Court Orders” (p. 35) contained an error. The Office of Personnel Management’s (OPM’s) Handbook for Attorneys on Court-Ordered Retirement, Health Benefits and Life Insurance, publication RI 83-116, is no longer available in print form from either the U.S. Government Printing Office or OPM. The handbook is available only on the Internet at www.opm.gov/retire/pubs/ pamphlets/list.asp. NARFE regrets the error.

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NOVEMBER 2011 | NARFE

Join

NARFE

Who can join?

Today!

To apply:

Membership is open to civilians in any agency of the federal or D.C.* governments including: • Retirees • Active federal employees • Spouses and former spouses of active and retired federal employees • Former employees eligible for deferred annuity • Survivors of those eligible to join NARFE

Check out eNAR FE, our new electronic m embership option, at www.NAR FE .org

• Complete the application below.

• Enclose payment information, bill pay, check or money order payable to NARFE, or request to be billed.

• Or go to our Web site at www.narfe.org.

• Or call us at 800-627-3394 and join today! *Prior to October 1, 1987

Enrollment includes membership in a local chapter and the national association, plus a subscription to NARFE’s monthly publication, NARFE magazine.

NARFE MEMBERSHIP APPLICATION For Active and Retired Federal Employees 1. Choose all that apply: Retiree Spouse Survivor

Active employee Former spouse Former employee

2. Also enroll my spouse __________________________

www.narfe.org

Contact Information:

Full Name: Mr./Mrs./Miss/Ms.

full name

3. Please enroll me in NARFE chapter ______________

Street Address

4. __________ $45 x __________ Membership Fee # of People Per Person Enrolling

City/State/ZIP

= __________ Total Payment

Total payment (check, bill pay or money order payable to NARFE) Bill me (Membership starts when payment is received) Charge to my credit card The first year membership fee includes national and chapter dues.

Credit Card Information: MasterCard Card type: Discover

VISA AMEX

Card no. ___________________________________________ Expiration Date ________________ (MM)

(YY)

Name on Card (Print) ________________________________ Signature ____________________________ Date __________ NARFE | NOVEMBER 2011

Apt./Unit

Phone Number E-mail Address Date of Birth Spouse’s Date of Birth (if applicable) Recruiter’s Membership and Chapter Number

MAIL TO:

NARFE Member Records 606 N. Washington St. Alexandria, VA 22314-1914 Fax: 703-838-7783

1Q 53

NARFE News Beaudoin Named to CFC-50 Commission

N

ARFE President Joseph A. Beaudoin has been named to the CFC-50 Commission, a panel that will advise Office of Personnel Management Director John Berry on strengthening the integrity, operation and effectiveness of the Combined Federal Campaign

(CFC) to ensure its continued growth and success.

The commission is made up of 28 people and is chaired by two former members of Congress, Beverly Byron, D-MD, and Tom Davis, R-VA. It held its first meeting September 13.

Berry said the commission is needed

he Massachusetts Federation has a new president, William L. Wayne. His contact information is: 30 John St., Apt. 4, Marshfield, MA 02050-4756; e-mail, blwayne55@ yahoo.com.

The list of federation presidents included in the September 2011 issue (pp. 44-45) should be updated with this information.

NARFE has 90thAnniversary merchandise for sale: • 90th Anniversary Book, DISCOUNTED to $6!

To order,go to www.narfe.org,click on Leadership at the top, then click on NARFE 90thAnniversary Merchandise.

New Fed Pres

T

Celebrate NARFE’s 90th!

• 90th Anniversary PowerPoint Presentation,$5.

• 90th Anniversary Lapel Pin,$3.

“to help answer the big questions, to make CFC more agile, more adaptable, and more relevant to more federal workers and more charities.”

The CFC will celebrate its 50th anniversary later this year. ■

Years of Celebrating 90

Service

1 1921-201

NARFE National Life Membership Application National Life Membership offers a hedge against future dues increases and affirms a member’s ongoing support of NARFE’s mission to serve federal employees and retirees. National dues are paid for life; applicable chapter dues are billed annually.

Life Membership Fee Schedule

Membership Information

Contact Information

Ages

(Active NARFE members)

Member Number:_______________________

Full Name: Mr./Mrs./Miss/Ms.

Street Address

Single or Quarterly Payment Installments

Apt./Unit

City/State/ZIP

E-mail Address

30-39 $1,796 40-40 1,408 (New members) Membership is open to civilians in 1,127 any agency of the federal or D.C. (before Oct. 1, 1987) 51-55 56-60 960 governments eligible for a federal annuity.

61-65 801 Check one: 66-70 653 Retiree Active federal employee 71-75 514 Spouse Former federal employee 76-80 392 Former spouse Survivor 81-90 251 91-100+ 127

Payment Information Single payment

or

$450.25 353.25 283.00 241.25 201.50 164.50 129.75 99.25 64.00 33.00

Quarterly Installments (4 payments)

Life Membership fee amount: $____________ Date of Birth

Credit card

Check or money order (payable to NARFE)

Credit Card Info: MasterCard

Discover

Visa

AMEX

Recruiter’s ID # (if applicable)

Card Number:______________________________ Exp. Date:_____/_____ Chapter Number (call 800-456-8410 for chapter information)

Name on Card: (print) ___________________________________________________ Signature: __________________________________________ Date:______________

Thank you for becoming a National Member for Life. You will receive a membership card, certificate and special lapel pin. Please allow six weeks for processing. Dues payments & gift contributions to NARFE are not deductible as charitable contributions for income tax purposes.

Mail application and payment to: NARFE, Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314

54

NOVEMBER 2011 | NARFE

Out & AW bout ith the Chapters

Visit our online gallery at www.narfe.org.

Click on NARFE magazine.

Senior Expo. Chapter 444 in Jefferson County, NY, sponsored a booth at the local senior expo. Staffing it are Howard Martin, left, and Carl Disalvatore.

Grass-Roots Advocacy Month. A delegation representing District V of the West Virginia Federation met with Rep. Shelley Moore Capito. Pictured from left are: Dan Duckwall, Phil Springs, Capito, John Sheely, Steve Sosson and Clifford Peyton. Representatives of District V also met with staff in the offices of Sens.

Manchin and Rockefeller. For more Advocacy Month photos, see p. 18.

Alzheimer’s Donation.

Bob Shaughnessy, president of Palm Coast Chapter 1557 in Florida, presents a donation to Rebecca J. Levy, administrator of the Flagler Pines Rehabilitation and Nursing Center in Bunnell, FL, for the center’s Alzheimer’s program.

Alzheimer’s Walk. Members of Chapter 262 in Louisville, KY, participated in the local Alzheimer’s Walk.

The walkers wore posters designed and distributed to chapters in the state by Marj Fair, Kentucky Federation publicity chair, promoting NARFE’s record of fundraising for Alzheimer’s research.

To submit a photo: E-mail it to rl@narfe.org or send it by postal mail to NARFE Headquarters, ATTN: Out & About.

NARFE members contributed for Alzheimer’s research:

SUPPORT ALZHEIMER’S RESEARCH

$10 Million Fund

$9,343,204* *Total as of August 31, 2011 100% of all contributed funds go to Alzheimer’s research.

If you have any questions, write to: National Committee Chairman Barb L. Pretzer, 4817 Rockridge Ct. Manhattan, KS 66503 E-mail: bpretzer@ksu.edu

Enclosed is my NARFE-Alzheimer’s contribution: $ ___________.

Every cent that is contributed is used for research.

Please circle:

Mr.

Mrs.

NARFE-Alzheimer’s Research and mail to: Alzheimer’s Association 225 N. Michigan Ave., 17th Floor Chicago, IL 60601-7633

NARFE | NOVEMBER 2011

Ms.

Address _____________________________________________________________ City _______________________________ State _________ ZIP ______________ Chapter number _______________________ Credit Card Information: ❑ Visa

Your charitable contribution is tax deductible to the fullest extent allowed by law. Write your chapter number on check; make it payable to:

Miss

Name _______________________________________________________________

❑ MasterCard

❑ Discover

❑ AMEX

Card Number: __________________________________________________________ Expiration Date:________(mm)/_________(yy) 3-Digit Security Code: _________ Name on Card: (print) ___________________________________________________ Signature:_________________________________________ Date: _______________

55

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MOVING SERVICES

NARFE MEMBER HOMEBENEFITS 1-800-666-9203 http://narfe.myhomebenefits.com • Earn thousands in cash-back rewards when you buy or sell a home* • Shop competitive mortgage rates, receive discounts on closing costs, plus take advantage of your VA Loan Benefits • Receive preferred pricing on interesete moving services with the nation’s most trusted moving company – Allied Van Lines! *State restrictions apply. Call or visit website for details.

BEKINSVAN LINES 1-800-456-6832 (M-F, 8 a.m.-5 p.m. CT) narfe@bekins.com All NARFE members will receive discounted pricing for all interstate shipments. Discount will apply to packing and moving services and valuation protection. All intrastate shipments, locals and international moves will be competitive in cost based on your geographical location. Mention you are a NARFE member and transportation agreement #00930.

VACATION RENTALS

EndlessVacation Rentals® As a member of NARFE, you will receive 10% off the “Best Available Rate” at vacation rental properties booked at www.evrentals.com/narfe or by calling 1877-670-7088, prompt 3, and providing promotion code 20672 at time of booking.

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INSURANCE

TRAVEL

NARFE INSURANCE SERVICES

CRUISE SALE!

1-800-233-5764 Insurance plans designed and administered exclusively for NARFE members.

Call for information on Whole and Term Life, Hospital Indemnity, Accidental Injury and Death Plan, Dental Plan and Cancer Care Plan. For information on Long Term Care call the Long Term Care Unit at 1800-358-3795.

Unbeatable Deals on Royal Caribbean Cruises Bahamas: 5-days/4-nights from $199 Bermuda: 8-days/7-nights from $599 Caribbean: 8-days/7-nights from $469 Europe: 11-days/12-nights from $499 Transatlantic: 15-days/14-nights from $499 There has never been a better time to book Your Next Cruise Vacation!

GEICO:1-800-368-2734 NARFE members with good driving records may be eligible for quality automobile insurance from GEICO. Ask about the NARFE discount now available to members in many states. Call today for your free, no-obligation rate quote. Be sure to mention that you’re a NARFE member!

• Discount amount varies in some states • Discount not available in all states or in all GEICO companies • One group discount applicable per policy.

EMERGENCY SERVICES SINCE 1974 1-800-423-3226 Medical Air Services Association has been the industry leader in prepaid emergency assistance services for more than 30 years. NARFE members have experienced MASA’s “peace of mind” services since 2001. Now NARFE members are entitled to even more: air ambulance transportation, helicopter transportation, ground ambulance, vehicle return, mortal remains transport, and much more!

Call MASA Today. It Could Save Your Life!

1-800-607-4538 www.NARFEtravel.com

HEARING BENEFITS TRUHEARING The TruHearing program can save you hundreds of dollars: • Free hearing screening • 45-day, money-back guarantee • 3-year warranty • Free one-year supply of batteries • 1,400 hearing professionals nationwide • 12-months, no interest financing (available upon approved credit)

Call to schedule your appointment

877-360-2442 Operators available Mon-Fri 9 a.m.-9 p.m. (East Coast time)

NOVEMBER 2011 | NARFE

HOTELS

CAR RENTALS

CREDIT UNION

CHOICE HOTELS INTERNATIONAL With 6,000 hotels in the United States and throughout the world, Choice Hotels® offers something for everyone. Join the Choice Privileges® rewards program and earn points with every qualifying stay toward free nights, Airline Rewards, gift cards and more. As a NARFE member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967. This offer is subject to availability and cannot be combined with any other offer. Advance reservations required. To book, visit choicehotels.com or call 800-258-2847.

ALAMO Drive Happy® with Alamo® where NARFE members receive year-round discounts. Call 1-800-462-5266 and reference Contract ID 262544.

NATIONAL You Drive A Hard Bargain. Receive up to 20% off rentals at National Car Rental. To make a reservation call National Car Rental at 1-800-CAR-RENT® and reference Contract ID 5282909.

NARFE’S OFFICIAL CREDIT UNION As a member of NARFE, you have the privilege of joining NARFE Premier Federal Credit Union, which has been serving members since 1935. We offer extensive services at competitive rates to members nationwide. Your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government.

For more information, call 800-3281500, e-mail jparish@narfepremierfcu. org or visit us at NARFEpremierfcu.org.

CREDIT CARD AVIS:1-800-331-1441

WYNDHAM HOTEL GROUP As a member of NARFE, you will receive up to 20% off the “Best Available Rate” at participating locations when you travel. Call and give agent your special discount ID number, 8000002694, at time of booking to receive discount. Whether you are looking for an upscale hotel, an all-inclusive resort or something more cost-effective, we have the right hotel for you... and at the right price. So start saving now. Call our special memberbenefits hotline 1-877-670-7088 and reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts®, Days Inn®, Ramada Worldwide®, Super 8®, Wingate By Wyndham®, Baymont Inns and Suites®, Hawthorn Suites® By Wyndham, Microtel Inns and Suites®, Howard Johnson®, Travelodge® and Knights Inn®.

NARFE | NOVEMBER 2011

The employees/owners of Avis offer guaranteed low rates and quality services to members of NARFE. Mention ID# A991900.

HEALTH SCREENING

LIFE LINE SCREENING Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct the following screenings using state-of-the-art ultrasound technology in your neighborhood: 1. Stroke/Carotid Artery 2. Abdominal Aortic Aneurysm 3. Atrial Fibrillation 4. Peripheral Arterial Disease.

You will receive a confidential written report within 21 days. Life Line Screening and NARFE encourage you to share these test results with your doctor. All four screenings cost just $135. To schedule an appointment, please call 1-800-324-9906 and give the operator code number: BKHN075 or visit www.lifelinescreening. com/NARFE. Coverage may vary and may not be available in all states.

Bank of America now offers the officially approved credit card program for NARFE, featuring the Platinum Plus® MasterCard® with WorldPoints. This is the only credit card that helps support NARFE every time you use it to make a purchase–at no additional cost to you.

Call toll-free 1-866-438-6262 Use NARFE’s full name, not NARFE. Use priority code: UABEWD.

NARFE MERCHANDISE NARFE GENERAL STORE

Order Official NARFE Name Badges.

Coming soon, customizable NARFE logo products and plaques.

See MEMBER PERKS on the NARFE Web site, or go to: www.narfegeneralstore.com.

Toll-Free Phone: 877-866-0102 Fax: 301-371-6824

57

For the Record The chart below tracks the CPI-W, the monthly inflation change, and the cumulative percentage gain for the next CSRS and Social Security COLA. CPI-W October 2010 November December January 2011 February March April May June July August September

214.623 214.750 215.262 216.400 217.535 220.024 221.743 222.954 222.522 222.686 223.326

MONTHLY % CHANGE % CHANGE FROM 215.5 +0.1 +0.1 +0.2 +0.5 +0.5 +1.1 +0.8 +0.5 -0.2 +0.07 +0.3

TSP Stocks Fall For 5th Month ByTracey Ray

T

he TSP equity funds fell for the fifth month in a row, with September being the worst month so far. Investors are avoiding the markets as the eurozone tries to find a solution to the woes of Greece, and China shows signs of slowing.

The C Fund fell 14 percent during the third quarter, reminiscent of the declines during the financial crisis of 2008. Financial stocks were among the worst performers, with some banks falling 25 percent. Wall Street strategists have reduced their forecasts for growth and company earnings, and fears that there may be another global recession abound. Even China’s economy is starting to show signs of weakness.

Tracey Ray is chief investment officer of the Thrift Savings Plan.

Track the TSP every month in NARFE magazine 58

-0.4 -0.4 -0.1 +0.42 +0.95 +2.10 +2.90 +3.46 +3.26 +3.34 +3.63

Prices Rise Again in August

T

he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.3 percent in August. To calculate the 2012 cost-of-living adjustment (COLA), the indices of July, August and September 2011 will be averaged for a thirdquarter determinant, which will be compared with the 2008 thirdquarter base of 215.495 (because of price deflation in the past two measurement years, the 2008 third-quarter average is still the point of comparison). The August index of 223.326 is up 3.63 percent from the base.

Benefits awarded under the Federal Employees’ Compensation Act (FECA) to individuals suffering work-related injuries or illnesses are adjusted according to each calendar year’s percentage change in the CPI-W. August’s index is 3.75 percent higher than the December 2010 base index of 215.262. ■

Thrift Savings Plan Investments* Month G Fund October 0.18% 2010 November 0.17% December 0.20% 0.24% 2011 January February 0.22% March 0.26% April 0.25% May 0.25% June 0.21% July 0.22% August 0.19% September 0.16% Last 12 Months 2.58%

F Fund 0.36% (0.57%) (1.05%) 0.13% 0.26% 0.06% 1.28% 1.31% (0.30%) 1.59% 1.45% 0.73% 5.34%

C Fund 3.80% 0.01% 6.68% 2.37% 3.42% 0.04% 2.96% (1.13%) (1.67%) (2.04%) (5.44%) (7.03%) 1.11%

S Fund 4.48% 3.00% 7.38% 1.23% 4.52% 2.06% 2.94% (1.27%) (2.35%) (3.14%) (8.12%) (10.73%) (1.62%)

Month 2010 October November December 2011 January February March April May June July August September Last 12 Months

L 2020 2.29% (0.49%) 4.08% 1.35% 2.15% (0.03%) 2.37% (0.74%) (0.84%) (0.94%) (3.69%) (4.73%) 0.43%

L 2030 2.78% (0.56%) 4.96% 1.57% 2.60% (0.05%) 2.83% (0.97%) (1.10%) (1.25%) (4.63%) (5.92%) (0.28%)

L 2040 3.16% (0.64%) 5.67% 1.75% 2.95% (0.08%) 3.20% (1.15%) (1.30%) (1.49%) (5.37%) (6.85%) (0.88%)

L Income 0.92% (0.05%) 1.49% 0.63% 0.90% 0.17% 1.01% (0.05%) (0.18%) (0.14%) (1.10%) (1.51%) 2.08%

I Fund 3.63% (4.84%) 8.12% 2.41% 3.33% (2.23%) 6.03% (2.90%) (1.16%) (1.60%) (9.03%) (10.55%) (10.12%) L 2050

3.28% (0.15%) 3.57 (1.39%) (1.48%) (1.75%) (6.16%) (7.80%)

*This chart is provided as a service to NARFE members who enrolled in the Thrift Savings Plan while employed by the federal government. Retirees are not eligible for enrollment. These returns are net of the effect of accrued administrative expenses and investment expenses/costs. Percentages in ( ) are negative. Source: tsp.gov.

NOVEMBER 2011 | NARFE

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Medical Alarm installation, button. The Medical this product Alarm has saved my life is “plug not once but three and play.” times! The first The unit is incident was on designed May 15th, for easy use in when I had an emergency, a stroke. The with large, wear as a second incident was pendant, or easy-to-identify on Oct 15th, I found myself on your belt, buttons. or on your wrist on the floor, with a knot on my head and a hole in the wall. The third Plus it’s reliable. From the incident was on Oct 23rd, I felt waterproof pendant to the strange sitting in the chair. I could not move my right arm or leg. I sophisticated base unit the state-of-the-art 24/7 call learned that the hole in my heart center, the entire system is (from birth),was forcing the high designed to give you the blood pressure through the hole and right up to my brain, this was the peace of mind in knowing reasons for all three strokes. I can you are never alone in an emergency. You get two-way walk and talk with the exception of a weak right arm. If it was not for communication with a live person in our Emergency the Medical Alarm, who knows what the outcome could’ve been.”

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